UNIVERSITY OF CALIFORNIA, BERKELEY'S HAAS SCHOOL OF BUSINESS -- In the late 1990s, investor emotion played a significant role in inflating the dot-com bubble and ultimately, making a lot of people rich. Emotional excitement not only creates stock market bubble but research shows that the frenzy actually causes them to grow.
For the study's experiment, participants' emotions were stimulated by watching popular action films -- such as Mr. and Mrs. Smith with Brad Pitt and Angelina Jolie playing married assassins -- prior to making buying or selling stocks.