Investors often operate based on emotional biases than long-term fundamentals.
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China recently eased restrictions under the Zero Covid policy and is reportedly going through a large Covid-19 wave. This has started causing concerns amongst financial market participants, which highlights a very important aspect of investor behaviour. Investors often operate based on emotional biases than long-term fundamentals.
[This article has been reproduced with permission from SP Jain Institute of Management & Research, Mumbai. Views expressed by authors are personal.]