Explain why you consider each example as a market anomaly/market bubble: Financial Behaviour Case Study, UOL, UK

PART 1: Financial markets anomalies and financial bubbles

Required:

• Find 3 examples of ANY market anomalies or market bubbles from ANY real financial market;
• Explain why you consider each example as a market anomaly/market bubble;
• Provide your understanding of the situation, highlighting the possibilities that could help to avoid the consequences (should we avoid the positive consequences?) of a market anomaly/market bubble.
• Compare the analyzed examples, explaining opportunities to identify the formation of market anomalies/market bubbles in advance and not allowing them to happen (if possible).

 PART 2: Fake news and information manipulation in the financial environment

Required:

• Make a selection of fake news (3 or more) in ANY financial market.
• Analyse the common features of your selected examples.
• Suggest how to identify fake news „upon their arrival“ to the public and prevent their negative (or positive?) influence.
• Discuss 6 examples of information manipulation you have ever experienced and explain your behaviour in each situation.

PART 3: Cognitive and emotional biases and their influence on decision making

Required:

• Choose 3 cognitive and emotional biases that influence your behaviour most of all.
• Discuss your decisions under the influence of your selected biases. Are they all the time rational? How could you change your behaviour, applying all knowledge gained during this module?

Answer

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