Investor Sentiment and Behavior: Catastrophic Events Can Significantly Impact Investor Sentiment and Behavior

EasyChair Preprint no. 12506

Abstract

This abstract discusses the impact of catastrophic events on investor sentiment and behavior. Catastrophic events, such as natural disasters, terrorist attacks, and global pandemics, have the potential to evoke fear, uncertainty, and disruption among investors. These events can lead to psychological factors such as overreaction and loss aversion, as well as economic factors like economic disruption and increased market volatility. Investor sentiment and behavior can shift towards risk aversion, flight to safety, and changes in investment strategies and portfolio allocations. Understanding and managing investor sentiment and behavior during catastrophic events is important for market participants. Strategies such as diversification, risk management, and effective investor education and communication can help mitigate the impact of these events. Further research is needed to deepen our understanding of the dynamics between catastrophic events and investor sentiment and behavior.

Keyphrases: catastrophic events, COVID-19, Geopolitical Conflicts, Global Pandemics, impact, investor behavior, Long-term implications, market reactions, natural disasters, nvestor sentiment, terrorist attacks

@Booklet{EasyChair:12506,
  author = {Klaus Hubert and Abdul Jawwad},
  title = {Investor Sentiment and Behavior: Catastrophic Events Can Significantly Impact Investor Sentiment and Behavior},
  howpublished = {EasyChair Preprint no. 12506},

  year = {EasyChair, 2024}}