Psychology Is Responsible for Many of the Ups and Downs

Psychology does fluctuate inordinately in the markets and is responsible for many of the ups and downs. I think the reason the fluctuations are so extreme is that there's money at stake. When things are going people are manic about participating, when things are going poorly, they get depressed and they want to avoid losses. So i think that the presence of money in the equation produces a hyper sensitivity to events. This has nothing to do with fundamentals. This is about psychology.