Download or read book A Crisis of Beliefs written by Nicola Gennaioli and published by Princeton University Press. This book was released on 2018-09-11 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: How investor expectations move markets and the economy The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Although the government rushed to rescue other financial institutions from a similar fate after Lehman, it could not prevent the deepest recession in postwar history. A Crisis of Beliefs makes us rethink the financial crisis and the nature of economic risk. In this authoritative and comprehensive book, two of today’s most insightful economists reveal how our beliefs shape financial markets, lead to expansions of credit and leverage, and expose the economy to major risks. Nicola Gennaioli and Andrei Shleifer carefully walk readers through the unraveling of Lehman Brothers and the ensuing meltdown of the US financial system, and then present new evidence to illustrate the destabilizing role played by the beliefs of home buyers, investors, and regulators. Using the latest research in psychology and behavioral economics, they present a new theory of belief formation that explains why the financial crisis came as such a shock to so many people—and how financial and economic instability persist. A must-read for anyone seeking insights into financial markets, A Crisis of Beliefs shows how even the smartest market participants and regulators did not fully appreciate the extent of economic risk, and offers a new framework for understanding today’s unpredictable financial waters.
Download or read book Investor Beliefs and Their Impact on Financial Markets written by Carolin Hartmann and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Crisis of Beliefs written by Nicola Gennaioli and published by Princeton University Press. This book was released on 2020-03-10 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: "How investor expectations move markets and the economy. The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Although the government rushed to rescue other financial institutions from a similar fate after Lehman, it could not prevent the deepest recession in postwar history. A Crisis of Beliefs makes us rethink the financial crisis and the nature of economic risk. In this authoritative and comprehensive book, two of today's most insightful economists reveal how our beliefs shape financial markets, lead to expansions of credit and leverage, and expose the economy to major risks. Nicola Gennaioli and Andrei Shleifer carefully walk readers through the unraveling of Lehman Brothers and the ensuing meltdown of the US financial system, and then present new evidence to illustrate the destabilizing role played by the beliefs of home buyers, investors, and regulators. Using the latest research in psychology and behavioral economics, they present a new theory of belief formation that explains why the financial crisis came as such a shock to so many people--and how financial and economic instability persist. A must-read for anyone seeking insights into financial markets, A Crisis of Beliefs shows how even the smartest market participants and regulators did not fully appreciate the extent of economic risk, and offers a new framework for understanding today's unpredictable financial waters."--
Download or read book Adaptive Markets written by Andrew W. Lo and published by Princeton University Press. This book was released on 2019-05-14 with total page 503 pages. Available in PDF, EPUB and Kindle. Book excerpt: A new, evolutionary explanation of markets and investor behavior Half of all Americans have money in the stock market, yet economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. The debate is one of the biggest in economics, and the value or futility of investment management and financial regulation hangs on the answer. In this groundbreaking book, Andrew Lo transforms the debate with a powerful new framework in which rationality and irrationality coexist—the Adaptive Markets Hypothesis. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency is incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo’s new paradigm explains how financial evolution shapes behavior and markets at the speed of thought—a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation. An ambitious new answer to fundamental questions about economics and investing, Adaptive Markets is essential reading for anyone who wants to understand how markets really work.
Download or read book Essays on the Role of Investor Beliefs in Financial Markets written by Tyrone William Callahan and published by . This book was released on 1999 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investment Beliefs written by K. Koedijk and published by Springer. This book was released on 2010-12-08 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: Having the right investment beliefs and putting them into practice is key to delivering the right results. Decision makers in the investment industry should worry less about the stocks and products they pick for their clients and more about getting the big picture right; developing investment beliefs are instrumental in making the right choices.
Download or read book Financial Market History Reflections on the Past for Investors Today written by David Chambers and published by CFA Institute Research Foundation. This book was released on with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 2008 financial crisis, a resurgence of interest in economic and financial history has occurred among investment professionals. This book discusses some of the lessons drawn from the past that may help practitioners when thinking about their portfolios. The book’s editors, David Chambers and Elroy Dimson, are the academic leaders of the Newton Centre for Endowment Asset Management at the University of Cambridge in the United Kingdom.
Download or read book Investors Beliefs and Their Implications on Asset Pricing Excess Returns and Volatilities in Financial Markets written by Doina G. Vlad and published by . This book was released on 2004 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Mind of Wall Street written by Leon Levy and published by PublicAffairs. This book was released on 2009-03-25 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt: As stock prices and investor confidence have collapsed in the wake of Enron, WorldCom, and the dot-com crash, people want to know how this happened and how to make sense of the uncertain times to come. Into the breach comes one of Wall Street's legendary investors, Leon Levy, to explain why the market so often confounds us, and why those who ought to understand it tend to get chewed up and spat out. Levy, who pioneered many of the innovations and investment instruments that we now take for granted, has prospered in every market for the past fifty years, particularly in today's bear market. In The Mind of Wall Street he recounts stories of his successes and failures to illustrate how investor psychology and willful self-deception so often play critical roles in the process. Like his peers George Soros and Warren Buffett, Levy takes a long and broad view of the rhythms of the markets and the economy. He also offers a provocative analysis of the spectacular Internet bubble, showing that the market has not yet completely recovered from its bout of "irrational exuberance." The Mind of Wall Street is essential reading for all of us, whether we are active traders or simply modest contributors to our 401(k) plans, as volatile and unnerving markets come to define so much of our net worth.
Download or read book Post Modern Investment written by Garry B. Crowder and published by John Wiley & Sons. This book was released on 2012-11-08 with total page 349 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debunking outdated and inaccurate beliefs about investment management and reveals the new realities of the post-modern financial markets There have been a lot of big changes in the investment world over the past decade, and many long-cherished beliefs about the structures and performance of various investments no longer apply. Unfortunately the news seems not to have reached many thought leaders and investment professionals who persist in trying, and failing, to apply 20th-century thinking to 21st-century portfolio management. Nowhere is this more true than when it comes to the subject of alternative investments. Written by an all-star team of investment management experts, this book debunks common myths and misconceptions about most classes of alternative investments and offers valuable advice on how to develop investment management and asset allocation strategies consistent with the new realities of the ever-changing world of alternative investments. Covers most alternative asset classes, including private equity, real estate, managed futures, hedge funds, commodity indices, and more Debunks long-held assumptions about the structure and performance of various investment classes that continue to dominate the industry Explores the implications for investment managers of the proliferation of international marketable securities and global financial markets Provides an overview of both the micro and the macro aspects of each alternative investment class
Download or read book Handbook of Financial Markets Dynamics and Evolution written by Thorsten Hens and published by Elsevier. This book was released on 2009-06-12 with total page 607 pages. Available in PDF, EPUB and Kindle. Book excerpt: The models of portfolio selection and asset price dynamics in this volume seek to explain the market dynamics of asset prices. Presenting a range of analytical, empirical, and numerical techniques as well as several different modeling approaches, the authors depict the state of debate on the market selection hypothesis. By explicitly assuming the heterogeneity of investors, they present models that are descriptive and normative as well, making the volume useful for both finance theorists and financial practitioners. Explains the market dynamics of asset prices, offering insights about asset management approaches Assumes a heterogeneity of investors that yields descriptive and normative models of portfolio selections and asset pricing dynamics
Download or read book Expectation in financial markets written by David M. Ritzwoller and published by . This book was released on 2018 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: Newly available panel data on investor expectations of future returns to the stock market suggest that (1) there is a large degree of heterogeneity in the ways that investors form beliefs about future stock market returns, that (2) investors frequently change the ways that they form their beliefs, that (3) investor's decisions to change the way that they form beliefs are influences by changes in market behavior, and that (4) adaptation in the ways that investors form beliefs significantly effect aggregate price dynamics. First, I reproduce, refine, and substantially expand a nonparametric procedure initially developed in Dominitz and Manski (2011) to classify investor expectations into three "expectation-types" based on how investors revise their expectations for returns relative to the change in recent returns. I find that there is substantial heterogeneity in expectation-types and frequent adaptation between expectation-types. Second, I show that the probability of transitioning to a different expectation-type is significantly correlated with the size and sign of the change in recent returns, indicating that the decision to adapt to a different expectation-type is influenced by recent market behavior. Third, I develop a simple, stylized, agent-based model of adaptation of expectation-types and argue that adaptive behavior can significantly influence aggregate price dynamics in ways consistent with observed stock market behavior.
Download or read book Financial Behavior written by H. Kent Baker and published by Oxford University Press. This book was released on 2017-05-02 with total page 681 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Behavior: Players, Services, Products, and Markets provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. The book offers a different way of looking at financial and emotional well-being and processing beliefs, emotions, and behaviors related to money. The book provides important insights about cognitive and emotional biases that influence various financial decision-makers, services, products, and markets. With diverse concepts and topics, the book brings together noted scholars and practitioners so readers can gain an in-depth understanding about this topic from experts from around the world. In today's financial setting, the discipline of behavioral finance is an ever-changing area that continues to evolve at a rapid pace. This book takes readers through the core topics and issues as well as the latest trends, cutting-edge research developments, and real-world situations. Additionally, discussion of research on various cognitive and emotional issues is covered throughout the book. Thus, this volume covers a breadth of content from theoretical to practical, while attempting to offer a useful balance of detailed and user-friendly coverage. Those interested in a broad survey will benefit as will those searching for more in-depth presentations of specific areas within this field of study. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh looks at the fascinating area of financial behavior.
Download or read book BEHAVIORAL INVESTOR written by DANIEL. CROSBY and published by Jaico Publishing House. This book was released on 2019-01-01 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Art and science of investment management The behavior investor aims to enrich readers in the most holistic sense of the word, leaving them with tools for compounding both wealth and knowledge. Wealth, truly considered, has at least as much to do with psychological as financial wellbeing. In the behavior investor, psychologist and asset manager Daniel crosby examines the sociological, neurological and psychological factors that influence our investment decisions and sets forth practical solutions for improving both returns and behavior. Readers will be treated to the most comprehensive examination of investor behavior to date and will leave with concrete solutions for refining decision-making processes, increasing self-awareness and constraining the fatal flaws to which most investors are prone.
Download or read book OECD Sovereign Borrowing Outlook 2021 written by OECD and published by OECD Publishing. This book was released on 2021-05-20 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edition of the OECD Sovereign Borrowing Outlook reviews developments in response to the COVID-19 pandemic for government borrowing needs, funding conditions and funding strategies in the OECD area.
Download or read book The Implications of Investor Behaviour to Financial Markets written by Lisa Desiree Majmin and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial markets are subject to sentiment from within and beyond their nation's borders. Fund flows either flood markets with liquidity, or drain them to the point of asset fire sales. This typically occurs in accordance with investors' beliefs and risk preferences and ultimately renders markets unstable. This thesis serves to establish the implications of investor behaviour to financial markets. Chapter 2 proposes macro sentiment as a leading indicator for financial instability within the Early Warning Framework of Borio & Lowe (2002). This signalling method identifies imbalances within the financial system. Key indicators include real equity and property prices, and private credit. Macro sentiment is then shown to display excess pessimism prior to systemic crises and therefore, is a relevant leading indicator. US institutional investor sentiment is measured through the demand for portfolio insurance in Chapter 3. Shefrin (1999) advocates index option markets as the manifestation of institutional investor sentiment. A decrease in index option skewness is associated with bearish sentiment. This chapter applies a non-parametric method to extract the risk-neutral distribution to gauge sentiment based on the 30-day probability of the underlying reaching the at-the-money futures level, and the third moment. These measures are examined in relation to the VIX, the put-call ratio, the slope of the implied volatility function and the Bakshi, Kapadia & Madan (2003) skew. Chapter 4 proposes a theory of sentiment propagation and examines the link between global and investor sentiment within the US. An extensive literature review of mutual fund flows and sentiment within the broad context of the macroeconomy affirms the use of cross-border fund flows as the channel through which sentiment propagates. The empirical section then establishes congruency between global sentiment, as measured by dedicated USA equity and bond fund flows of US and non-US domiciled investors and sentiment within the US.
Download or read book Impact Investing written by Antony Bugg-Levine and published by John Wiley & Sons. This book was released on 2011-08-02 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: A ground-breaking book on the transformative power of impact investing This is the first book to chart the catalytic path of this new industry, explaining how it is and can be a positive disruptive force. It shows how impact investing is a transformational vehicle for delivering "blended value" throughout the investment spectrum, giving a single name to a set of activities previously siloed in enclaves, revealing how they are linked within what is becoming a new field of investing. Written by two leaders in the growing field of impact investing, the book defines this emerging industry for participants on all sides of the funding equation (investors, funders and social entrepreneurs). Filled with illustrative examples of impact investing success stories Reveals how the field can expand in order to address the most critical social and environmental issues of our day Explores the wide-ranging applications of impact investing as well as entrepreneurial opportunities The authors do not take a normative approach to argue how investors should behave like an investment guide might but show how entrepreneurial people and institutions are already offering an integrated alternative.
