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The U.S. equity markets are reaching highs not seen since 2007, and while such strength is a good thing, all that market heat is also driving poor trading behavior due to news reports and the pump-and-dump world of social media, warns the behavioral economics consultancy MarketPsych.

While price forecasts in the news media can create outsize profitability patterns in the markets, social media creates a “primal” form of influence over market prices, says MarketPsych Managing Director Richard Peterson in a March 16 blog post, “New Highs! Stock Promoters, Media Manipulation and Timing Price Reversals.”

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