In the daily financial news cycle, one might read that ... research demonstrates that investor psychology frequently plays a significant role in market movements. Cognitive biases such as ...

Since the market is made up of people, it also takes time to fully price in what has happened and what is happening. A model for this is Elisabeth Kübler-Ross’s Cycle of Grief: Denial ...

That’s mainly a reflection of market psychology–stocks tend to rise gradually but fall quickly when confidence disappears.