@article {Mesly21, author = {Olivier Mesly}, title = {Fear, Predatory Webs, and Blind Trust Characterize Market Bubbles}, volume = {17}, number = {4}, pages = {21--41}, year = {2015}, doi = {10.3905/jwm.2015.17.4.021}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article posits that fear, predatory webs, and blind trust characterize the emergence and implosion of market bubbles. It rests on a psychological view of market agent{\textquoteright}s behavior anchored in the Consolidated Model of Financial Predation (CMFP). Two mathematical formulae are generated with the growth phase formula correctly depicting herd behavior, overshooting, and over-optimism followed by an unavoidable crisis phase. This article hopes to shed new light on market bubbles, a better understanding of which can assist governments in setting up proper measures to control them, if not to eliminate them altogether.TOPICS: In Markets, financial crises and financial market history}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/17/4/21}, eprint = {https://jwm.pm-research.com/content/17/4/21.full.pdf}, journal = {The Journal of Wealth Management} }