The role of psychology is enormous - Part 1

"The role of psychology is enormous," - said the expert of Danske Bank about what really drives the market.

Our knowledge of the market, as a rule, is limited to dry information, that arrives every day as a result of trading. We can only guess what lies behind it, and what is actually due to the dynamics of trading, because every rise and fall is based on human's choise. There are people - traders, brokers, asset managers, who use the information in their own way.
Strategists from Danske Bank Vladimir Miklashevskiy notes, that the role of psychology in the markets is enormous, "Its size, of course, varies depending on the state of the market, but there are times when psychology - that's all. Markets, like dry hay in the hot summer, can burn out from the stub. Especially when expectations are filled with uncertainty because of the unknown. The more the money supply on the market, the less the laws of supply and demand of the real economy can be seen in the movement of the markets".
For example, now globally all depends on the US monetary policy of the Fed: as softer is it (not even in practice, but in standby), as more desirable investors go into assets with higher risk (and profitability), including on emerging markets, stocks and commodities. Conversely, as more tight is the monetary policy, the more desirable assets are the low market, so-called "safe havens" for example, the US dollar, the Swiss franc, the Danish krone.