Irrational Euphoria: Financial Markets as a Laboratory

This article provides a thorough analysis of financial markets, viewed as a laboratory of human psychology. The author juxtaposes Eugene Fama's classic efficient markets theory with Robert Shiller's concept of irrational euphoria, examining why investors' collective actions often deviate from cold calculation. The text provides a detailed discussion of the mechanisms behind speculative bubbles, the role of the CAPE ratio, and the impact of cultural narratives and cognitive biases on asset pricing. Readers will learn how mass media and social myths shape real estate and stock markets, leading to excessive volatility that economic fundamentals cannot explain. This is a key study for understanding how emotions and intelligent capital coexist in shaping contemporary capitalism.