HOW NON-PROFESSIONAL INVESTORS CREATE FINANCIAL BUBBLES IN THE STOCK MARKET

Abstract

In the context of financial globalization, frequent crises and the increasing involvement of the population in the financial sphere, a serious problem of financial science is the emergence of financial bubbles in the stock market. Although now a fairly large number of causative factors have been identified and the mechanism of their occurrence has been described, the real causes have not yet been found. Therefore, there are no tools to predict and prevent the occurrence of a bubble. In the article, the author proposes a new approach to solving this problem, based on the concretization of the concept of «irrational investor», using the tools of behavioral finance and the results of modern research in the field of anomalies in the stock market.