What will you learn from this book
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Historical Context: Exploring past market panics and crashes to understand their triggers, consequences, and the lessons learned from these events.
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Psychology of Panic: Analyzing the behavioral and psychological aspects that drive panic-selling or market downturns, including fear, uncertainty, and investor behavior during crises.
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Systemic Risks: Discussing factors that contribute to systemic risks within financial systems, such as excessive leverage, interconnectedness of markets, or regulatory shortcomings.
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Market Volatility: Examining how volatility escalates during panic periods, impacting asset prices, market liquidity, and investor sentiment.
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Government and Central Bank Responses: Evaluating the role of governments and central banks in managing market panics, including intervention measures, monetary policy, and regulatory changes.
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Financial Instruments and Derivatives: Explaining the role of complex financial instruments and derivatives in amplifying market panic or serving as potential triggers.
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Media and Communication: Assessing the role of media and information dissemination in exacerbating or mitigating market panic, and how public perception influences market movements.
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Global and Regional Impact: Discussing how local or regional events can trigger global market panic or contagion effects across international financial markets.
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Investor Behavior and Herd Mentality: Exploring how herd mentality among investors can contribute to panic selling or irrational decision-making during market crises.
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Lessons and Preparing for Future Panics: Drawing lessons from historical market panics to develop strategies for risk management, diversification, and preparedness for future market downturns.
| Language | English |
|---|---|
| ISBN-10 | 0-470-82152-3 |
| No of pages | 266 |
| Font Size | Medium |
| Book Publisher | Wiley |
| Published Date | 26 Jan 2005 |
About Author
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Many investors have shunned equity markets since the end of the dotcom boom, marking the end of the biggest global stock market bull run in history. Other investors have made a great deal of money by ignoring the disillusion with equities and have stuck with the one investment class that has outperformed all others over time. In this incisive study Stephen Vines shows how stock markets operate in good times and bad and provides timely advice on how to benefit from the regular cycle of market panic and market boom. He provides some unusual answers to questions regularly asked by investors and shows why panics offer unique opportunities.
Long held assumptions about the benefits of investment diversification are challenged and new ways of understanding the panic cycle are offered. Interviews with market professionals directly involved in handling some major stock crises provide a compelling insiders account of what actually happens when panics break out. This book also looks at ways in which stock markets are becoming more detached from the companies and economies they are supposed to represent and shows how this is building a new and more dangerous form of instability into the market system. This is a truly comprehensive study examining all aspects of the stock market panic phenomenon. Presented in readable, jargon-free form this book will be of interest to anyone who invests in stock markets and is interested in preserving their wealth.