Börsturbulens & masspsykologi : En studie om marknadsfluktuationer, investeringsbeteende och psykologiska faktorers påverkan.

Today, financial investments and popular savings are used by a large number of peopleglobally to increase their chances of growing their financial wealth. This, in turn, generatesconsiderable interest in market movements and investment behavior during periods of stockmarket turbulence, which can be influenced by psychological factors. This study presentsboth traditional finance, based on the Efficient Market Hypothesis, and behavioral financetheory, along with psychological concepts such as risk and loss aversion, and prospecttheory. Empirical studies are also included that examine whether mass psychology affectsstock market turbulence and which psychological factors may influence investmentbehavior. The purpose of this study is to investigate whether mass psychology affects stock marketturbulence and whether there are differences in investment behavior between Sweden andthe USA, based on analyses of bull market uptrends and bear market downtrends. The studyanalyzes 130 stocks and two index measures, compared across selected time periods.Relevant statistical measures, including t-tests, are applied to determine whether there is asignificant difference in investment behavior between the two countries or during differentmarket conditions. After applying the selected methods and conducting t-tests based on the calculated values,the results show that (based on two comparison indexes, 130 stocks, and six time periodswith three being bull markets and three being bear markets) that there are statisticallysignificant differences in investment behavior between the two countries. However, nostatistically significant differences were found between bull and bear markets within eachcountry.