Theoretical and Applied Economics
No. 1 / 2007 (506)
Behavioral Finances versus Technical and Fundamental Analysis
Ion Stancu
Academia de Studii Economice Bucuresti
Abstract. Although the field of modern finance has progressed impressively, it is still hard to explain on a scientific basis why people behave nonrationally when dealing with money. The classic finance assumes people rationalize and optimize their financial decisions. Behavioral Finance adds the importance of what investors should do and complements the mantra of classic finance with what people actually do, in terms of economic decisions. The new field of Neuroeconomy investigates the subtle and profound interactions within the human brain when faced with uncertainties of an economic decision. The most basic psychological traits of human being (fear, anger, greed and altruism) stamp an indelible mark on our decisions about money. The intellect (understanding a situation), reason (long term consequences of the contemplated action) and emotion (the judge of the course of action) are all intercorrelated resorts behind human decision making.
Contents
Behavioral Finances versus Technical and Fundamental Analysis
Systemic Models of Local Development
Price Strategies in Banking Marketing
Effects of Private Pension Funds to Emergent Markets
Analysis of Public Sector Performances
Adopting the Euro: Costs or Benefits?
The System of Public Acquisitions by Means of Electronic Bids in the Light of European Regulations
Levels and Atypical Evolutions of the Romanian Demographic Processes
Strategic Methods to Reduce Globalization Company Risk: Alliances
Financial Ratio Analysis: the Development of a Dedicated Management Information System
The Role and Importance of the Lease Towards the Farms’ Size Increase
Operationalisation the Romanian Employment Strategy – Target for European Union Integration
The Impact of STN on Developing Markets in Relation with Globalization