Be wary of the ‘vibes’: positive investor sentiment doesn’t necessarily match the true value of stocks
- Written by Jedrzej Bialkowski, Professor and Head of Department, Economics and Finance, University of Canterbury
Global stock prices dropped across the board late last year, by between 10% and 15% in a matter of weeks.
Fears of a recession took hold after a series of interest rate increases, stubborn inflation and geopolitical tensions in Europe and the Middle East. Uncertainty gripped the market and eroded investor sentiment, only for markets to bounce back...
