ABSTRACT

The analysis and mapping of motivations that underpin the individual and collective actions and reactions have become increasingly sophisticated in a range of disciplines. In psychology, the study of group behaviour has been particularly animated and sheds light on a series of interdependent social triggers. The influence of psychological triggers within bubbles will be related to the markets themselves, which act in swelling and curtailing speculative activity. The intention of the material below is to critically reflect on the entrance to and exit from investment bubbles. The material below is concerned with the crowd and not the audience. It is, however, recognised that the generic crowd contains various elements of social activity that is not conducive to generalisations. The link that ties emotion and risk in bubble investments is an important factor that needs to be explicitly recognised.