ANALYSIS OF INVESTOR BEHAVIOR: MARKET FEELING AND HERDING BEHAVIOR IN THE PORTUGUESE STOCK MARKET

This paper aims to analyze the behavior of investors in the Portuguese capital stock market, in particular while studying the relationship between the herding behavior phenomenon and the market sentiment. The results obtained allow observing the existence of a significant level of herding behaviour intensity, especially when there is price variation occurrence. On the other hand, when herding is related to market sentiment, the statistical evidence allows one to conclude that herding behavior is encouraged when investors are attentive to the expectations of other market participants, suggesting that the emotional condition inherent of market capitalism is decisive in explaining the phenomenon of herding behavior.