Financial Markets: Values, Dynamics, Problems

The 2020 global stock market crash triggered by the coronavirus outbreak has led to an intertwined and still unfolding series of social, economic, and financial consequences. We will review several aspects of the recent pandemic crisis and critically compare them to extant findings on the effects of financial breaks, fear, and turbulences (global financial crises, terrorism, and previous pandemics) on financial markets. With the increase of uncertainty and volatility, the Covid-19 pandemic also affected investors’ risk attitudes, trust, and confidence. We will provide insight into these behavioral aspects and how they ultimately affect financial decision-making. Moreover, a unique side effect of the government restrictions is the unprecedented increase of digitalization: never before have global citizen of all ages been cornered into using online services and digital tools. We will discuss the implications of this new phenomenon for the financial market, its effect on social inequality, and the scenario of opportunities it entails.