Handbook of Investors´ Behavior during Financial Crises:
The Chief Investment Officer of Merrill Lynch Wealth Management explains why goals, not markets, should be the primary focus of your investment strategy-and offers a practical, innovative framework for making smarter choices about aligning your goals to your investment strategy. Today all of us bear the burden of investing wisely, but too many of us are preoccupied with the wrong priorities-increasing returns at all costs, finding the next star fund manager, or beating ´´the market.´´ Unfortunately conventional portfolio theory and the grand debates in finance have offered investors only incomplete solutions. What is needed, argues Ashvin B. Chhabra, is a framework that shifts the focus of investment strategy from portfolios and markets to individuals and the objectives that really matter: things like protecting against unexpected financial crises, paying for education or retirement, and financing philanthropy and entrepreneurship. The Aspirational Investor is a practical, innovative approach to managing wealth based on key goals and the careful allocation of risks rather than responding to the whims of the financial markets. Chhabra introduces his ´´Wealth Allocation Framework,´´ which accommodates the three seemingly incompatible objectives that must underpin every sound wealth management plan: the need for financial security in the face of known and unknowable risks; the need to maintain current living standards over time despite inflation; and the need to pursue aspirational goals for wealth creation. Chhabra reveals some surprising facts about wealth creation, reinterprets the success formulas of investing greats like Warren Buffett, and closes the gap between theory and practice by simplifying our understanding of key asset classes and laying out a concise roadmap for identifying, prioritizing, and quantifying financial goals. Raising the bar for what we should expect from our investment portfolios-and our financial advisors-The Aspirational Investor sets us on a path to more confident and fulfilling financial lives.
In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the U.S. dollar. Today we are engaged in a new currency war, and this time the consequences will be far worse than those that confronted Nixon. Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries´ stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008.Currency wars have happened before-twice in the last century alone-and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict.As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors. The United States is facing serious threats to its national security, from clandestine gold purchases by China to the hidden agendas of sovereign wealth funds. Greater than any single threat is the very real danger of the collapse of the dollar itself.Baffling to many observers is the rank failure of economists to foresee or prevent the economic catastrophes of recent years. Not only have their theories failed to prevent calamity, they are making the currency wars worse. The U. S. Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale. Its solutions present hidden new dangers while resolving none of the cu 1. Language: English. Narrator: Walter Dixon. Audio sample: http://samples.audible.de/bk/gdan/000626/bk_gdan_000626_sample.mp3. Digital audiobook in aax.
The chief investment officer of Merrill Lynch Wealth Management explains why goals, not markets, should be the primary focus of your investment strategy - and offers a practical, innovative framework for making smarter choices about aligning your goals to your investment strategy. Today all of us bear the burden of investing wisely, but too many of us are preoccupied with the wrong priorities - increasing returns at all costs, finding the next star fund manager, or beating ´´the market´´. Unfortunately conventional portfolio theory and the grand debates in finance have offered investors only incomplete solutions. What is needed, argues Ashvin B. Chhabra, is a framework that shifts the focus of investment strategy from portfolios and markets to individuals and the objectives that really matter: things like protecting against unexpected financial crises, paying for education or retirement, and financing philanthropy and entrepreneurship. The Aspirational Investor is a practical, innovative approach to managing wealth based on key goals and the careful allocation of risks rather than responding to the whims of the financial markets. Chhabra introduces his ´´Wealth Allocation Framework´´, which accommodates the three seemingly incompatible objectives that must underpin every sound wealth management plan: the need for financial security in the face of known and unknowable risks; the need to maintain current living standards over time despite inflation; and the need to pursue aspirational goals for wealth creation. Chhabra reveals some surprising facts about wealth creation, reinterprets the success formulas of investing greats like Warren Buffett, and closes the gap between theory and practice by simplifying our understanding of key asset classes and laying out a concise roadmap for identifying, prioritizing, and quantifying financial goals. Raising the bar for what we should expect from our investment portfolios - and our financial adv 1. Language: English. Narrator: Brett Barry. Audio sample: http://samples.audible.de/bk/harp/004495/bk_harp_004495_sample.mp3. Digital audiobook in aax.
When Charles P. Kindleberger´s Manias, Panics, and Crashes: A History of Financial Crises was first published in 1978, the world was entering a new period of global economic turbulence. Established economists based their analyses on the assumption that investors act rationally, and these economists often communicated their ideas with dry, technical language. Kindleberger rebelled against convention. Using a more literary and descriptive style, he came up with a new view. He argued that markets are unstable precisely because investors act irrationally when they get swept along on a tide of optimism or despair. This makes the financial markets susceptible to crises, and at times they are in need of radical intervention. Kindleberger´s historical examples of financial crashes worldwide show a distinct pattern, leading him to the conclusion that the world needs a single, central body to stabilize global markets at their most fragile moments. The fact that Kindleberger´s book is now in its seventh edition shows just how popular his ideas have become, and how they are still relevant today. Manias, Panics, and Crashes is essential listening for anyone who wants to understand the market cycle of boom and bust. 1. Language: English. Narrator: Macat.com. Audio sample: http://samples.audible.de/bk/acx0/062170/bk_acx0_062170_sample.mp3. Digital audiobook in aax.
Why do so many investors make the same mistakes repeatedly, being too bullish or too bearish at just the wrong times? Because they forget. Forgetting pain is an instinct - humans have evolved that way to better cope with the problems of survival. But in the complex and often counterintuitive world of investing, it causes serious errors. ´´This time it’s different´´ are the four most expensive words in the English language (according to investing legend Sir John Templeton). Yet many investors routinely fall into the trap of thinking ´´now´´ (whenever ´´now´´ is) is different somehow. In Markets Never Forget (But People Do), four-time New York Times best-selling author Ken Fisher explains how investor´s memories play (often costly) tricks on them - and how they can combat their faulty memories with just a bit of history. This isn’t to say history repeats itself perfectly. It doesn’t; but a recession is a recession. Some are vastly worse than others, but investors have lived through them before. Credit crises aren’t new, nor are bear markets - or bull markets. Geopolitical tension is as old as mankind, as is war and even terrorist attacks. Understanding how investors have reacted to similar past events can help guide investors in shaping better forward-looking expectations. The past never predicts the future, but it can reduce guesswork about what’s ahead. In this book, Fisher takes aim at some major market memory mishaps, like the idea that stocks have become inherently more volatile or that wildly above - or below - average returns are abnormal. He shows how, early in every recovery, investors don’t believe in it - often at a huge cost. And he shows how, in investing, ideology is deadly. Most important, he explains how you can use history as one powerful tool to help reduce your error rate while helping to get better investing results. 1. Language: English. Narrator: Mel Foster. Audio sample: http://samples.audible.de/bk/brll/003382/bk_brll_003382_sample.mp3. Digital audiobook in aax.
This myth-shattering book reveals the methods Nouriel Roubini used to foretell the current crisis before other economists saw it coming and explains how those methods can help us make sense of the present and prepare for the future.Renowned economist Nouriel Roubini electrified his profession and the larger financial community by predicting the current crisis well in advance of anyone else. Unlike most in his profession, who treat economic disasters as freakish once-ina-lifetime events without clear cause, Roubini, after decades of careful research around the world, realized that they were both probable and predictable. Armed with a blend of historical analysis and global economics, Roubini has forced politicians, policy makers, investors, and market watchers to face a long-neglected truth: financial systems are inherently fragile and prone to collapse.Drawing on the parallels from many countries and centuries, Nouriel Roubini and Stephen Mihm, a professor of economic history and a New York Times Magazine writer, show that financial cataclysms are as old and as ubiquitous as capitalism itself. All of these crises have much in common with the current downturn. Bringing lessons of earlier episodes to bear on our present predicament, Roubini and Mihm show how we can recognize and grapple with the inherent instability of the global financial system and plan for our immediate future. Perhaps most important, the authors - considering theories, statistics, and mathematical models with the skepticism that recent history warrants - explain how the world´s economy can get out of the mess we´re in, and stay out. In Roubini´s shadow, economists and investors are increasingly realizing that they can no longer afford to consider crises the black swans of financial history. A vital and timeless book, Crisis Economics proves calamities to be not only predictable but also preventable and, with the right medicine, curable. 1. Language: English. Narrator: L. J. Ganser. Audio sample: http://samples.audible.de/bk/peng/001478/bk_peng_001478_sample.mp3. Digital audiobook in aax.
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--and as financial bubbles, crashes, and crises suggest. This is one of the biggest debates in economics and the value or futility of investment management and financial regulation hang on the outcome. In this groundbreaking book, Andrew Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn´t wrong but merely 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.A fascinating intellectual journey filled with compelling stories, Adaptive Markets starts with the origins of market efficiency and its failures, turns to the foundations of investor behavior, and concludes with practical implications--incl...show more
A detailed guide to financial-market performance during financial crises. With the financial markets seemingly careening from one crisis to another, it´s vital for today´s investors and traders to have a historical perspective on market performance during times of great turmoil. In this audiobook Tim Knight provides an exhaustive analysis of financial market behavior prior, during, and following tumultuous events since 1600. Making copious use of charts and basic technical analysis, Knight demonstrates how external shocks tend to create extreme reactions in the financial markets and how these predictable reactions provide opportunities for investors and traders to profit. Knight traverses five centuries of financial market history, from Tulipmania in the 1600s to the contemporary sovereign debt crisis. He looks at each event from the prism of the financial markets, examining the market climate prior to the event, during the event, and following the event. Draws essential lessons from history, providing investors and traders with guidelines to better navigate markets in today´s tumultuous times Offers valuable insights on understanding and anticipating market responses to shocks and crises Companion website with a Q&A section contains charts from key moments in past financial crises and asks listeners to choose whether to go long, go short, or step aside If you´re looking for a better way to make it today´s dynamic markets, look no further than this timely book. PLEASE NOTE: When you purchase this title, the accompanying reference material will be available in your My Library section along with the audio. 1. Language: English. Narrator: Timothy Knight. Audio sample: http://samples.audible.de/bk/adbl/019563/bk_adbl_019563_sample.mp3. Digital audiobook in aax.