Name: Irrational Exuberance
ISBN: 9780767923637

Robert J. Shiller

An expert on market volatility offers a timely updated edition of his best-selling study that 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. Reprint. 15,000 first printing.

Irrational Exuberance

matej yangwao

** spoiler alert **
           Great explainer why one's needs to see bubble forming and what's creates influence before and after bubble burst, great 101 book.

Coming from crypto, bit learned cycles in faster pace ;)

>comes down to a range of psychological factors, including influence by the media and our desire to listen to self-proclaimed experts.

>People don’t want to hear negative news about their investments. Instead, they bury their heads in the sand and focus on the false positives.

≥ Speculative markets are affected by outside influences, perhaps far more than those inside.

>We can’t ignore the idea of morale either. When people feel upbeat about the financial forecast, they’re more likely to invest. We’re living in a time when materialism is becoming a primary focus. Many view investments as the catalyst to earning fast money so they can purchase their dream items

≥It’s no surprise to learn that speculative bubbles gained traction when newspapers appeared in the mainstream, and it’s not a coincidence. The media portrays itself as a wholly detached body, simply a vessel for communicating news to the masses. However, it drives morale and feelings within a market by presenting its words in a certain way.

≥When a significant event occurs within a market, it tends to be that there is a very similar way of thinking between a large group of people.

≥investments offer a solution that removes the temptation and increases the potential for return over time. But not understanding what you’re investing in and how the market can change may lead toward financial loss instead of gain.

Morgan Holland

Keernan Lanismore

Louie Dinh

The author argues that investor euphoria and discouragement can cause extreme fluctuations in the stock, bond, and housing markets and presents advice for investors on protecting themselves from future bubbles.