The nervousness of financial markets (investors) is associated with the novelty of the economic mechanisms

The series of rises and falls in financial markets shows investors ’ nervousness . We believe this nervousness is explained by the fact that they no longer have a clear and stable view of the economic situation because of the novelty o f many economic mechanisms in this end of an expansion period : formation of wage s , inflation and interest rates, corporate profitability . The resulting uncertainty about the formation of financial asset prices leads to investor nervousness .