Baby Plays the Stock Market In a Bad Economy

Baby trades stock in a bad economy. Maybe the game’s not as easy as it looks? Over-reactions may occur—so that excessive optimism may drive prices unduly high or excessive pessimism may drive prices unduly low. Other research has shown that psychological factors may result in exaggerated stock price movements. Psychological research has demonstrated that people are predisposed to ‘seeing’ patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds or ink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor’s self-confidence, reducing his (psychological) risk threshold Another phenomenon—also from psychology—that works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group financial-trends.info
Video Rating: 5 / 5


5 Comments so far »

  1. thin1966 said,

    Wrote on February 10, 2013 @ 9:37 am

    lmao…great vid….I remember my early days in investing…as soon as i bought a stock it would plummet….

  2. Joseph D said,

    Wrote on February 10, 2013 @ 9:52 am

    my goodness….this baby hurled at the thought of 2008

  3. donutworry said,

    Wrote on February 10, 2013 @ 9:58 am

    Extremely well done ad. The baby’s lips appear to move correctly to the words spoken; how did you do that? How did you do the whole thing – i.e. which softwares?

    Amusing, but with potent, valuable message. Great! This video should have millions of hits, but has only 71 at the moment. Never underestimate the taste of the utube public.

  4. ShareWaveOrg said,

    Wrote on February 10, 2013 @ 10:18 am

    five stars

    thanks for the smile

  5. irixboy said,

    Wrote on February 10, 2013 @ 10:55 am

    BHW Rules!!!

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