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Business & Finance Series: Expert Comment

Measuring the psychological impact of a health pandemic on stock markets

Stock market falls during health crises can be explained by more than just supply and demand factors, says Professor André Spicer
by Hamish Armstrong (Senior Communications Officer)

Stock markets around the world have taken significant and historic levels of damage this week due to the rapid spread of COVID-19 across the world.

Market volatility led to the biggest single-day fall since in 1987 as 10.87 per cent was wiped from the value of the FTSE 100.

Cass Professor of Organisational Behaviour André Spicer explains that this highly volatile behaviour of the markets is caused by more than just issues of supply and demand:

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“It is also worth considering that epidemics can have a psychological impact on markets, for several reasons.

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All comments should be attributed to Professor André Spicer.

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