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Fear and Greed: Investment risks and opportunities in a turbulent world

Book Description

The early 21st century has been a period of extreme fear and greed in the world's financial markets. Vast sums of wealth have been lost by some, but also made by others. Faith in the investment industry is now at its lowest-ever ebb, and the crisis remains far from resolution. Fear and Greed aims to prepare investors for the financial challenges and opportunities of the next few years. Having successfully guided his firm's investors through the turmoil since 2007, leading investment manager Nicolas Sarkis draws upon the lessons of history in order to illuminate the way ahead. In particular, Sarkis explores the plight of equities in the developed world since the millennium and considers when they might finally recover, as well as the likely effects of reducing government indebtedness upon markets. He also offers his insights into the outlook for stocks in emerging nations, for gold and for the single European currency. In addition to the prospects for the leading asset classes, Fear and Greed examines some of the biggest issues confronting the financial world as a whole. Sarkis focuses on the behaviour of central banks, regulators, and financial wrongdoers, especially in relation to their contribution to the current crisis. In this lively and engaging book, Sarkis offers a clear vision of the coming years and plenty of inspiration for investors.

Table of Contents

  1. Cover
  2. Publishing details
  3. Acknowledgements
  4. About the Author
  5. Introduction
  6. Chapter 1: A Lost Era in Equities
    1. Defining a lost era
    2. Why lost eras occur
    3. How to cope with lost eras
    4. Spotting the end of a lost era
  7. Chapter 2: Will Deleveraging Drag us Down?
    1. What indebtedness involves
    2. The cause of indebtedness
    3. When debt boom turns to debt bust
    4. Psychological effect on society
    5. How indebtedness can be reduced
    6. Deleveraging through inflation
    7. Financial repression
    8. Formulating investment strategy
  8. Chapter 3: Gold’s Glittering Path
    1. For the love of gold
    2. Gold and inflation
    3. Gold in times of turmoil
    4. Gold’s performance versus that of other assets
    5. How gold will perform in the years ahead
    6. How to invest in gold
  9. Chapter 4: Beyond Hype: a Balanced Look at Emerging Markets
    1. An investor’s perspective on emerging markets
    2. Bubble trouble in emerging markets
    3. Is there a bubble in China?
    4. Threats to investors taking exposure to emerging markets
    5. Using emerging markets for diversification
  10. Chapter 5: Dread, Denial and Default
    1. The Mexican Peso Crisis of 1994
    2. The Russian default of 1998
    3. The Argentinian default of 2001 to 2002
    4. Lessons from past crises
    5. The present situation
  11. Chapter 6: The Future of the Euro
    1. Contemplating a collapse of the euro
    2. Tensions within the eurozone
    3. Spread of contagion throughout the EU
    4. Eurozone members addressing internal problems
    5. How investors can play the eurozone situation
  12. Chapter 7: Fear and Loathing on Wall Street
    1. The fad for fear
    2. Anthrax and biological warfare scare
    3. SARS
    4. Avian flu
    5. The credit crunch and economic crisis
    6. The lessons of these episodes
  13. Chapter 8: When Rules and Regulators Fail
    1. Regulators and their regulations
    2. Accounting and legal bodies
    3. Caveat emptor
  14. Chapter 9: The Moral Hazard of Money
    1. Financial fraudsters
    2. Rogue traders
    3. Insider traders
    4. Raj Rajaratnam
    5. Prevalence of crime
  15. Chapter 10: Central Banks: Leave, Improve or Abolish?
    1. Central banks at centre stage
    2. How central banks respond to events
    3. Central bank monetary policy and the creation of bubbles
    4. Central bank monetary policy in normal conditions
    5. How the sins of central banks might be corrected
    6. Central banks here to stay
  16. Conclusion