PT  - JOURNAL ARTICLE
AU  - Olivier Mesly
TI  - Fear, Predatory Webs, and Blind Trust Characterize Market Bubbles
AID  - 10.3905/jwm.2015.17.4.021
DP  - 2015 Jan 31
TA  - The Journal of Wealth Management
PG  - 21--41
VI  - 17
IP  - 4
4099  - https://pm-research.com/content/17/4/21.short
4100  - https://pm-research.com/content/17/4/21.full
AB  - 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’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