© Arts and Social Science Research, Vol. 12 No 1 (June, 2022) 155 BUBBLES AND SUNSPOTS: INVESTORS’PERCEPTION OF THE NIGERIAN CAPITAL MARKET Adepoju Adeoba Asaolu 1 Osmond Chigozie Agu 2 ABSTRACT This paper examined the investors' perception of bubbles and sunspots. It attempted to find the degree of sensitivity of investors to the dual phenomenon because extrinsically determined shock (sunspot) could influence the psychology of investors through intrinsically determined shocks (bubbles). On this note, a primary research design was engaged using the report of a hundred and twenty-two (122) respondents. Data were analyzed using frequency distribution, percentages, mean, T-Test, and analysis of variance (ANOVA). Our findings revealed the depth of the relationship between some demographic factors (gender, age, and educational background) and investors' sensitivity to risk and returns (outcome). The results brought to the fore and reinforced the fact that information deficit was a major factor causing investors to plunge into the short circuit opportunities of bubbles or sunspots. Recommendations were thus made to address areas of marked information gap to enable investors or potential investors to head off possible future avoidable plunges. Keywords: Bubbles, Sunspots, Risk, Return, Nigerian Capital Market INTRODUCTION The concept of bubbles and sunspots in a way further confirms the vastness of the field of finance and economics because the two terms 1 Adepoju Adeoba Asaolu is with the Department of Finance, Federal University, Oye-Ekiti, Ekiti-State, Nigeria. E-mail: adepoju.asaolu@fuoye.edu.ng, Orcid Details: https://orcid.org/0000-0001-5404-0604 2 Osmond Chigozie Agu is with the Department of Economics, Federal University, Oye Ekiti, Ekiti State, Nigeria E-mail: osmond.agu@fuoye.edu.ng, Orcid Details: https://orcid.org/0000-0002-8290-1106