Behavioral Approach for Projection of Profitability of Financial Assets

This article proposes a rethinking of the condi­tions and the concept of rationality of investors in securities, and shifting the position of observation and analysis of financial assets. We defend the thesis that the assumptions of “rationality” of the capital markets (typical for classical paradigm), are too restrictive, especially the idea that inve­titsionnite agents are fully rational. Therefore, the classical approach to analysis can`t cover fully all the relevant factors, which determine the rate of return on financial assets. It appears neces­sary to more fully analyze the irrational behavior of the majority of investors in the capital market, as well as many other specific factors. The point of this research study is to find a new, innovative ap­proach, when designing the dynamics of profitabil­ity of exchange-traded on capital market financial instruments. Policies for the projection of strength and direction of profitability are displayed and detailed on the basis of the proposed approach. We’re developing a basic forecasting algorithm, that altogether meets the requirements of theoreti­cal reasoning, logic and simplicity of application.