Overview

Leading financial thinker and successful funds manager Bruce I. Jacobs reveals how markets crash as the result of investment strategies that purport to reduce risk but that ultimately backfire. Are financial crises really “perfect storms” or are they the result of investment strategies that create an illusion of safety? Too Smart for Our Own Good reveals how investors invariably fall for investment strategies that offer illusory promises of higher returns and protection from losses, but end in greater risk for markets and the economy. The book examines the influence of such strategies on the 1987 stock market crash, the 1998 collapse of hedge fund Long-Term Capital Management, and the 2007–2008 credit crisis. Investors who are aware of the common threads that connect these market disruptions can avoid the mistakes of the past and anticipate future market crises. The book provides a “behind the curtain” look at the investment approaches and instruments that caused several recent financial crises. 

Full Product Details

Author:   Bruce Jacobs
Publisher:   McGraw-Hill Education
Imprint:   McGraw-Hill Education
Dimensions:   Width: 16.50cm , Height: 4.10cm , Length: 23.60cm
Weight:   0.789kg
ISBN:  

9781260440546

ISBN 10:   1260440540
Pages:   464
Publication Date:   20 December 2018
Audience:   General/trade ,  General
Format:   Hardback
Publisher's Status:   Active
Availability:   Manufactured on demand  
We will order this item for you from a manufactured on demand supplier.

Table of Contents

Exhibits Acknowledgments Introduction: Creating Financial Storms Part I Chapter 1: Reducing Risk Part II Chapter 2: Black Monday 1987 Chapter 3: Replicating Options Chapter 4: Portfolio Insurance and Futures Markets Chapter 5: Portfolio Insurance and the Crash Chapter 6: After the 1987 Crash--Options Part III Chapter 7: Options, Hedge Funds, and the Volatility of 1998 Chapter 8: Long-Term Capital Management Chapter 9: Long-Term Capital Management Postmortem Part IV Chapter 10: The Credit Crisis and Recession, 2007-2009 Chapter 11: Blowing Bubbles Chapter 12: Weapons of Mass Destruction Chapter 13: Securitization and the Housing Bubble Chapter 14: Securitization and the Credit Crisis Part V Chapter 15: After the Storm, 2010-2018 Chapter 16: The European Debt Crisis Chapter 17: Illusions of Safety and Market Meltdowns Chapter 18: Taming the Tempest Appendix A: Foreshadowing the Crises: The Crash of 1929 Appendix B: Primer on Bonds, Stocks, and Derivatives Appendix C: The Debate on Portfolio Insurance Appendix D: Derivatives Disasters in the 1990s  Appendix E: Bruce Jacobs's Research Objectivity Standards Proposal Acronyms Glossary Endnotes Bibliography Index

Reviews

Jacobs' book is a thoughtful review of the incidents it covers, making vivid some matters which have faded a bit in history, and giving context to matters that remain all too vivid. --Christopher Faille AllAboutAlpha (11/27/2018)

Author Information

Bruce I. Jacobs holds a Ph.D. in finance from the Wharton School of the University of Pennsylvania. He is the author of Too Smart for Our Own Good: Ingenious Investment Strategies, Illusions of Safety, and Market Crashes, and Capital Ideas and Market Realities: Option Replication, Investor Behavior, and Stock Market Crashes, and co-editor, with Ken Levy, of Market Neutral Strategies. He serves on the advisory board of the Journal of Portfolio Management. 

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