Irrational Exuberance

Irrational exuberance is not that crazy. The once-popular terms speculative
mania or speculative orgy seemed too strong to describe what we were going
through in the 1990s. It was more like the kind of bad judgment we all remember
having ...

Author: Robert J. Shiller

Publisher: Princeton University Press

ISBN: 0691173125

Category: Business & Economics

Page: 392

View: 395

In this revised, updated, and expanded edition of his New York Times bestseller, Nobel Prize–winning economist Robert Shiller, who warned of both the tech and housing bubbles, cautions that signs of irrational exuberance among investors have only increased since the 2008–9 financial crisis. With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller's influential argument that psychologically driven volatility is an inherent characteristic of all asset markets. In other words, Irrational Exuberance is as relevant as ever. Previous editions covered the stock and housing markets—and famously predicted their crashes. This edition expands its coverage to include the bond market, so that the book now addresses all of the major investment markets. It also includes updated data throughout, as well as Shiller's 2013 Nobel Prize lecture, which places the book in broader context. In addition to diagnosing the causes of asset bubbles, Irrational Exuberance recommends urgent policy changes to lessen their likelihood and severity—and suggests ways that individuals can decrease their risk before the next bubble bursts. No one whose future depends on a retirement account, a house, or other investments can afford not to read this book.

Irrational Exuberance Reconsidered

Mathias Külpmann presents a framework to evaluate whether the stock market is in line with underlying fundamentals.

Author: Mathias Külpmann

Publisher: Springer Science & Business Media

ISBN: 3540247653

Category: Business & Economics

Page: 230

View: 535

Mathias Külpmann presents a framework to evaluate whether the stock market is in line with underlying fundamentals. The new and revised edition offers an up to date introduction to the controversy between rational asset pricing and behavioural finance. Empirical evidence of stock market overreaction are investigated within the paradigms of rational asset pricing and behavioural finance. Although this monograph will not promise the reader to become a millionaire, it offers a road to obtain a deeper understanding of the forces which drive stock returns. It should be of interest to anyone interested in what drives performance in the stock market.

Summary

Why read this summary: Save time Understand the key concepts Notice: This is a IRRATIONAL EXUBERANCE Book Summary. NOT THE ORIGINAL BOOK.

Author: Book Summary Publishing

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Page: 28

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Summary of: Irrational Exuberance by Robert Shiller "Irrational exuberance" is a catchphrase made famous by former Fed chairman Alan Greenspan during the notorious dot.com bubble of the 1990s. After repeat disasters, like the housing bubble of the early 2000s and speculative bubbles that heralded the 2007-2009 world financial crisis, are investors any wiser? Worse, is it even possible to know when a market is in a bubble? Nobel Prize-winning economist and Yale University professor Robert Shiller puts this speculative behavior into perspective. On the one hand, price volatility-which leads to substantial profit-is a powerful motivator in a free market. On the other, instability-which exacts a terrible toll on unwary investors-is a risk that the Fed might well do to rein in. A survey of ways and means provides you with vital lessons learned...or perhaps sadly unlearned? But you'll get one surefire reward: you'll know how you too can lower your exposure to the agony of the next economic bubble. Why read this summary: Save time Understand the key concepts Notice: This is a IRRATIONAL EXUBERANCE Book Summary. NOT THE ORIGINAL BOOK.

Irrational Exuberance in the U S Housing Market

Were Evangelicals Left Behind? Mr.Christopher W. Crowe. Working Paper
INTERNATIONAL MONETARY FUND Irrational Exuberance in the U.S. Housing
Market: Were Evangelicals Left. WP/09/57 Front Cover.

Author: Mr.Christopher W. Crowe

Publisher: International Monetary Fund

ISBN: 1451872046

Category: Business & Economics

Page: 32

View: 217

The recent housing bust has reignited interest in psychological theories of speculative excess (Shiller, 2007). I investigate this issue by identifying a segment of the U.S. population-evangelical protestants-that may be less prone to speculative motives, and uncover a significant negative relationship between their population share and house price volatility. Evangelicals' focus on Biblical prophecy could account for this difference, since it may enable them to interpret otherwise negative events as containing positive news, dampening the response of house prices to shocks. I provide evidence for this channel using a popular internet measure of "prophetic activity" and a 9/11 event study. I also analyze survey data covering religious beliefs and asset holding, and find that 'end times' beliefs are associated with a one-third decline in net worth, consistent with these beliefs providing a form of psychic insurance (Scheve and Stasavage, 2006a and 2006b) that reduces asset demand.

Irrational Exuberance

An analysis of the myth of the Celtic Tiger - Ireland's boom-bust cycle.

Author: Anthony Sweeney

Publisher:

ISBN: 9781901657845

Category: Business cycles

Page: 224

View: 669

An analysis of the myth of the Celtic Tiger - Ireland's boom-bust cycle.




Behavioral Finance

"The speculative bubble in stock prices (particularly those of technology stocks) that began to form in 1995 and subsequently burst in March of 2000 has renewed interest in the psychology of investor behavior.

Author: Matt Maaske

Publisher:

ISBN:

Category: Finance

Page: 82

View: 865

"The speculative bubble in stock prices (particularly those of technology stocks) that began to form in 1995 and subsequently burst in March of 2000 has renewed interest in the psychology of investor behavior. Although speculative bubbles are by no means new, they all share numerous characteristics, including irrational behavior on the part of investors, both individual and institutional. This study will seek to explore and address why investor behavior in speculative periods does not conform to traditional economic theory, which assumes that all actors behave rationally. In addition, the study will examine why, despite myriad historical examples, investors repeatedly make the same mistakes during these speculative times."--Author's abstract.


The Greenspan Effect

Greenspan's words had sliced their way into a volatile and skittish market, with
profound effect. One lesson we take away from the irrational-exuberance episode
is the power of the sound bite, especially from the lips of an influential figure who
 ...

Author: David B. Sicilia

Publisher: McGraw-Hill Companies

ISBN: 9780071382526

Category: Business & Economics

Page: 273

View: 252

""[David Sicilia and Jeffrey Cruikshank] have done their homework on this fascinating economist. Greenspan's career is spelled out to readers in this informative and interesting read."--San Diego Union Tribune Selected by "Library Journal as a Best Business Book of the Year With one key phrase or comment, Federal Reserve chairman Alan Greenspan can send global financial markets tumbling-- or soaring! "The Greenspan Effect provides an up-close examination of Greenspan's tumultuous regime, suggesting to investors what pronouncements to expect-- and what they will mean--during the remainder of his remarkable term in office. This in-depth analysis of the words of Alan Greenspan includes highlights of his most influential speeches and demonstrates his uncanny, far-reaching power to impact markets on a global scale. In addition, it explains how to separate rhetoric from meaningful signals and anticipates the impact Greenspan is likely to have on future global markets. "The Greenspan Effect focuses on one powerful and brilliant man, his words and actions, and how investors can profit from this new knowledge.

Green Greed

This is not just a capital play for financial gain, and the cannabis industry has the opportunity to do what the tobacco and alcohol industries never did - exercise human decency by moving with great caution and great sense of personal ...

Author: Rollan Roberts II

Publisher: Independently Published

ISBN: 9781688078574

Category:

Page: 40

View: 274

The cannabis industry has presented investors, entrepreneurs, and the investment banking industry with a once-in-a-lifetime opportunity - a post-prohibition market grab of one of the most established paraphernalia in the world. Cannabis post-prohibition is a multi-hundred-billion-dollar market with a loyal, established customer base. Early entrant business owners have benefited monetarily due to irrationalism, overvaluation, industry confusion, and blind-exuberance. Cannabis is a field that requires great self-discipline and control for sake of the greater good and mankind. This is not just a capital play for financial gain, and the cannabis industry has the opportunity to do with the tobacco and alcohol industries never did - exercise human decency by moving with great caution and great sense of personal responsibility.

Dinkelmann s Rules

Remember Alan Greenspan ' s testimony before Congress — his fear that the
market was in danger of succumbing to irrational exuberance ? Not only do I
differ from most classically trained economists in thinking that irrational
exuberance ...

Author: Joe Lamport

Publisher: Booklocker.Com Incorporated

ISBN: 9781591131618

Category: Fiction

Page: 276

View: 884

A satiric novel about a business and romance, following the adventures of a group of youthful entrepreneurs who make and lose a fortune during the Dot-Com era with a company called FreeEnterprize.com.

Investors Digest

Irrational exuberance was a term used to define the mood behind the market,
when the Dow Jones Industrial Average tripled between 1 ... Arguably, irrational
exuberance is a form of emotional investing when perception is falsely modified.

Author:

Publisher:

ISBN:

Category: Investments

Page:

View: 918


The Bubble and the Bear

Irrational exuberance ” became a rallying cry for those who felt the nineties ' bull
was going to treat the economy like a china shop ... Chairman Al had asked when
we would know that irrational exuberance had “ unduly escalated asset values .

Author: Doug Hunter

Publisher:

ISBN: 9780385659185

Category: Managerial accounting Canada

Page: 474

View: 975

The Bubble and the Bear recounts the dramatic rise and fall in Nortel stock value and tracks its devastating effects on personal savings and investments in Canada. A brilliant analysis of Canada' s most damaging stock gamble. A cautionary tale of stock market mania, drawing on interviews with Canadian investors who lost tens of thousands of dollars, Nortel employees, and the precious few analysts who foresaw the collapse of the stock. The tech industry boom of the late 1990s led stock analysts to believe that Nortel and other telecommunications industry leaders were a sure thing, the stock that every Canadian should own. By the summer of 2000, Nortel had a market capitalization of almost $375 billion. Nortel figured prominently in the portfolios of most every pension fund in the country, as well as in many mutual funds and RRSPs, as investors were determined to ride the biggest wave on the Toronto Stock Exchange (TSE). Hunter demystifies the tech industry and the bubble economy' s " irrational exuberance, " which took hold of the stock markets as tech companies rushed to build a global communications infrastructure. When Nortel began to dominate the TSE, it also caught the eye of U.S. analysts, driving the share price up further and making it an active contender on the New York Stock Exchange. - Why did mutual funds and pension plans gamble so heavily on Nortel? - Why were most analysts cheering from the sidelines, unprepared for the dramatic revenue shortfall announced in February 2001? - How did Nortel get away with presenting earnings that made losses disappear? - Is there any evidence of negligence orwrongdoing? All these questions, and more, are answered in this account of Canada' s most costly stock gamble.

Exuberance

Built into such speculative episodes , Galbraith asserts , is euphoria , “ the mass
escape from reality , that excludes any serious contemplation of the true nature of
what is taking place . ” Such “ irrational exuberance , ” a term made famous by ...

Author: Kay R. Jamison

Publisher: Knopf

ISBN:

Category: Psychology

Page: 405

View: 905

An international expert in the field of mood disorders and best-selling author of An Unquiet Mind explores the role of exuberance in humankind's most important creative and scientific accomplishments, discussing the nature of exuberance and its relationship to intellectual curiosity, creativity, risk-taking, and survival.

The American Economic Review

David Warsh , Boston Globe IRRATIONAL EXUBERANCE IRRATIONAL
EXOBERANCE Second Edition Robert J. Shiller Robert Shiller's bestseller ,
Irrational Exuberance , predicted the collapse of the stock market in the spring of
2000.

Author:

Publisher:

ISBN:

Category: Economics

Page:

View: 442

Includes annual List of doctoral dissertations in political economy in progress in American universities and colleges; and the Hand book of the American Economic Association.

Rational Exuberance

... be someone involved in running our economy — maybe Alan Greenspan , who
rules over the nation ' s Federal Reserve Bank . With a few words ( like “ irrational
exuberance ” ) he can shake the stock market and send the economy reeling .

Author: Meredith E. Bagby

Publisher: E P Dutton

ISBN:

Category: Business & Economics

Page: 274

View: 406

A young reporter for CNN's Financial News Network analyzes the economic habits of people in their twenties and thirties, their influence on the national economy, and the challenges they face in an era of diminishing expectations.


2001 Corporate Finance Case Supplement

NOTE : IRRATIONAL EXUBERANCE On December 5 , 1996 , Federal Reserve
Chairman Alan Greenspan used the term “ irrational exuberance ” to describe the
behavior of investors on the stock market . In the eyes of many , the term still ...

Author: Victor Brudney

Publisher:

ISBN: 9781587782244

Category: Corporations

Page:

View: 339