Using experiments with the audience, Cocca showed how easily our brain can be guided by moods. The fact that these moods can quickly lead to irrational movements in prices is obvious and can also be proven by facts. For example, prices on the Vienna Stock Exchange fell sharply in March 2020, although corporate profits remained largely stable.
Cocca also addressed the question of who invests money better, men or women. The clear result of a large number of scientific studies: the women. “Men tend to overestimate themselves. Women, on the other hand, usually have a longer-term strategy and take fewer risks,” said Cocca.
In addition, female investors are often able to assess what other investors are up to. “It doesn’t depend on your own favourites, you have to know who the favorites of the majority of participants are,” Cocca quoted British economist John Maynard Keynes as saying. And women are more likely to have this ability than men.
If you know that there are also irrational phases on the stock exchanges, you as an investor have to adjust to them and not allow yourself to be infected by moods. At the moment there is just such a phase, because of the large number of crises. Cocca’s advice: “Keep calm!”
Source: Nachrichten
