Irrational Exuberance

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.

Author: Robert J. Shiller

Publisher: Princeton University Press

ISBN: 0691173125

Category: Business & Economics

Page: 392

View: 872

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

An expert on market volatility shows that the value of the stock market may be significantly inflated and urges cautious optimism, predicting that the market may show poorer performance in the future.

Author: Robert J. Shiller

Publisher: Broadway

ISBN:

Category: Business & Economics

Page: 319

View: 199

An expert on market volatility shows that the value of the stock market may be significantly inflated and urges cautious optimism, predicting that the market may show poorer performance in the future.

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: 842

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 Irrational Exuberance By Robert J Shiller

SUMMARY IRRATIONAL EXUBERANCE by Robert J. Shiller G Shortcut Edition SUMMARY - Irrational Exuberance By Robert J. Shiller. Front Cover.

Author: Shortcut Edition

Publisher: Shortcut Edition

ISBN:

Category: Business & Economics

Page: 35

View: 665

* Our summary is short, simple and pragmatic. It allows you to have the essential ideas of a big book in less than 30 minutes. By reading this summary, you will discover how social, economic and political factors create a speculative market in the stock market and real estate. You will also discover : how the media uses financial information to attract the public; that the speculative bubble resembles the Ponzi scheme, which is a fraudulent financial system; that cognitive biases encourage risky stock market decisions; how changes in interest rates play a key role in the stock market; the paths to be followed to minimize the risks of a financial bubble. In economics, the term "irrational exuberance" refers to the risky behaviour of investors faced with prices that no longer represent the reality of their value. These situations where investors allow themselves to be influenced by announcements of rising share prices create speculative bubbles. In the 2000s, this situation created an overvaluation of the stock market, which subsequently led to major financial crises. How can this phenomenon be explained? *Buy now the summary of this book for the modest price of a cup of coffee!

Irrational Exuberance in the U S Housing Market

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: 763

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.

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

Publisher:

ISBN:

Category:

Page: 28

View: 526

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.




Toward Rational Exuberance

They say, in effect, that the bulls are “irrational.” It is the behavioralist bears' passionately held belief that the stock market is subject to mammoth ...

Author: B. Mark Smith

Publisher: Farrar, Straus and Giroux

ISBN: 1429930888

Category: Business & Economics

Page: 288

View: 550

The True History, and Dangerous Myths, of the Modern Stock Market. The stock market is big news now, influencing every aspect of the modern economy. Accepted wisdom has it that the market will provide retirement security for anyone willing to diligently save and invest.Yet many people can remember a time when the stock market was little more than a primitive insiders' game, viewed by most Americans with skepticism and suspicion. In Toward Rational Exuberance, B. Mark Smith, a professional stock trader with two decades of practical experience, tells the fascinating story of how this stunning transformation occurred. Smith traces the evolution of popular theories of stock market behavior, showing how they have become widely accepted over time. He also clarifies some of these theories -- such as the notion that the market is often susceptible to speculative "bubbles" that will inevitably burst -- and explains how they are based on faulty interpretations of market history. The central thesis of Toward Rational Exuberance is that the modern stock market is the product of a dynamic evolutionary process; it cannot be predicted by extrapolating arbitrary historical standards into the future. It is only by understanding the way the modern market has been created that today's investor can begin to understand the market itself.

Finance and the Behavioral Prospect

This book explains how investor behavior, from mental accounting to the combustible interplay of hope and fear, affects financial economics.

Author: James Ming Chen

Publisher: Springer

ISBN: 3319327119

Category: Business & Economics

Page: 343

View: 332

This book explains how investor behavior, from mental accounting to the combustible interplay of hope and fear, affects financial economics. The transformation of portfolio theory begins with the identification of anomalies. Gaps in perception and behavioral departures from rationality spur momentum, irrational exuberance, and speculative bubbles. Behavioral accounting undermines the rational premises of mathematical finance. Assets and portfolios are imbued with “affect.” Positive and negative emotions warp investment decisions. Whether hedging against intertemporal changes in their ability to bear risk or climbing a psychological hierarchy of needs, investors arrange their portfolios and financial affairs according to emotions and perceptions. Risk aversion and life-cycle theories of consumption provide possible solutions to the equity premium puzzle, an iconic financial mystery. Prospect theory has questioned the cogency of the efficient capital markets hypothesis. Behavioral portfolio theory arises from a psychological account of security, potential, and aspiration.

Irrational Exuberance eGalley

GetAbstract Summary: Get the key points from this book in less than 10 minutes.

Author: Robert J. Shiller

Publisher:

ISBN: 9781400897056

Category:

Page: 374

View: 140



Irrational Exuberance ARC to 25 Pages 26 to 50 Pages 51 to 75 Pages 76 to 100 Pages 101 to 125 Pages 126 to 150 Pages 151 to 175 Pages 176 to 200 Pages 201 to 225 Pages 226 to 250 Pages 251 to 275 Pages 276 to 300 Pages 301 to 325 Pages 326 to 350 Pages 351 to 374

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, now cautions that signs of irrational exuberance among investors ...

Author: Robert J. Shiller

Publisher:

ISBN: 9781400897421

Category:

Page: 374

View: 517

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, now cautions that signs of irrational exuberance among investors have only increased since the 2008-9 financial crisis. With high stock and bond prices in the United States, and rising housing prices in many countries, 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 wor.


Safire s Political Dictionary

Greenspan's utterance quickly became a catchphrase. Yale economist Robert Shiller adopted Irrational Exuberance as the title of a book, published with ...

Author: William Safire

Publisher: Oxford University Press

ISBN: 0195340612

Category: Political Science

Page: 862

View: 486

Featuring more than one thousand new, rewritten, and updated entries, this reference on American politics explains current terms in politics, economics, and diplomacy.

Exuberance

Exuberance “But how do we know . . .” is from a speech by Alan Greenspan, quoted by Robert J. Shiller, Irrational Exuberance (Princeton: Princeton ...

Author: Dolores Hayden

Publisher: Red Hen Press

ISBN: 1597096148

Category: Poetry

Page: 88

View: 909

Take flight with these dazzling persona poems telling the stories of daredevil pilots in the early days of aviation—from the author of American Yard. Daredevil pilots Lincoln Beachey, Betty Scott, Harriet Quimby, Ruth Law, Ormer Locklear, Bessie Coleman, and Clyde Pangborn fly at carnival altitudes to thrill millions of spectators who have never seen an airplane. In a lyrical sequence of persona poems, the pilots in Exuberance wonder how the experience of moving through the air will transform life on the ground. They learn to name the clouds, size up the winds, mix an Aviation Cocktail, perform a strange field landing, and make an emergency jump. “Intoxicated with the history of aviation, Dolores Hayden has written a work of historical imagination that is vocally energetic, psychologically acute, and musically sophisticated. . . . The movement between lyrical speech and historical reflection gives us not only a portrait of the early years of the twentieth century, but a book in which technological advance is given a profoundly human voice.” —Tom Sleigh, poet, dramatist, essayist, author of House of Fact, House of Ruin “Exuberance is the word for this expansive and exciting collection, and also the word for the vanished earliest days of aviation it evokes, when flying was entertainment and adventure, not everyday transportation. Hayden brings to life a rollicking cast of birdmen and birdwomen, showmen and stunt pilots, producers and profiteers—and their entranced audiences and riders too. . . . Hayden’s lush and energetic poems give us earthbound readers, used to shuttling from airport to airport, a sense of what that intoxication must have felt like.” —Katha Pollitt, poet and columnist, author of The Mind-Body Problem

Exuberance

“wishful thinking on the part of investors”: Robert J. Shiller, Irrational Exuberance (Princeton, N.J.: Princeton University Press, 2000), p. xii. 27.

Author: Kay Redfield Jamison

Publisher: Vintage

ISBN: 1400043743

Category: Psychology

Page: 352

View: 366

With the same grace and breadth of learning she brought to her studies of the mind’s pathologies, Kay Redfield Jamison examines one of its most exalted states: exuberance. This “abounding, ebullient, effervescent emotion” manifests itself everywhere from child’s play to scientific breakthrough and is crucially important to learning, risk-taking, social cohesiveness, and survival itself. Exuberance: The Passion for Life introduces us to such notably irrepressible types as Teddy Roosevelt, John Muir, and Richard Feynman, as well as Peter Pan, dancing porcupines, and Charles Schulz’s Snoopy. It explores whether exuberance can be inherited, parses its neurochemical grammar, and documents the methods people have used to stimulate it. The resulting book is an irresistible fusion of science and soul.

Bursting the Bubble Rationality in a Seemingly Irrational Market

Bubbles go hand in hand with the notion that markets can be irrational. The academic community has a great ... The Bubble Insurgency Irrational Exuberance.

Author: David F. DeRosa

Publisher: CFA Institute Research Foundation

ISBN: 1952927110

Category: Business & Economics

Page: 324

View: 694

The presence of speculative bubbles in capital markets (an important area of interest in financial history) is widely accepted across many circles. Talk of them is pervasive in the media and especially in the popular financial press. Bubbles are thought to be found primarily in the stock market, which is our main interest, although bubbles are said to occur in other markets. Bubbles go hand in hand with the notion that markets can be irrational. The academic community has a great interest in bubbles, and it has produced scholarly literature that is voluminous. For some economists, doing bubble research is like joining the vanguard of a Kuhnian paradigm shift in economic thinking. Not so fast. If bubbles did exist, they would pose a serious challenge to neoclassical finance. Bubbles would contradict the ideas that markets are rational or work in an informationally efficient manner. That’s what makes the topic of bubbles interesting. This book reviews and evaluates the academic literature as well as some popular investment books on the possible existence of speculative bubbles in the stock market. The main question is whether there is convincing empirical evidence that bubbles exist. A second question is whether the theoretical concepts that have been advanced for bubbles make them plausible. The reader will discover that I am skeptical that bubbles actually exist. But I do not think I or anyone else will ever be able to conclusively prove that there has never been a bubble. From studying the literature and from reading history, I find that many famous purported bubbles reflect inaccurate history or mistakes in analysis or simply cannot be shown to have existed. In other instances, bubbles might have existed. But in each of those cases, there are credible rational explanations. And good evidence exists for the idea that even if bubbles do exist, they are not of great importance to understanding the stock market.