The rhythms of financial markets

Behavioural patterns repeat every cycle, and people who learn from them understand the market better.

During the 2020-21 Covid-19 pandemic, the Nepal Stock Exchange (NEPSE) reached unprecedented highs despite the broader economic challenges. A speculative mania ensued in the market, driving the stock price of assets to all-time highs. The aftermath of the pandemic, compounded by weak domestic demand, the introduction of a margin lending cap and the Nepal Rastra Bank's benchmark interest rate hikes, made 2022 one of the most challenging years for the stock market. By mid-2022, investor sentiment hit rock bottom, weighed down by a persistently bleak economic outlook, leaving inexperienced investors with significant losses.