Yet the fundamental variables driving sharemarkets don’t change, Liu points out. A listed company’s share price is perennially reflective of two things: the business’ underlying earnings, growth, and management; and then how much people are willing to pay for it, or what we know as investor sentiment. That’s where things get hairy. “People underestimate the emotional side of sharemarkets. Most of the time, [stock price] movement is due to emotion,” she says, adding that emotional bias has “significantly amplified” since COVID. Loading “What varies a lot of the time is actually not due to company earnings. It’s because of what people want to pay. And that is behavioural.” Her job…