Overview: A Framework for Investing During Currency Crises and Asset Bubbles

Abstract

This book is intended as a field guide to show readers how to navigate their way around, and in some cases, identify the precursors of financial crises, specifically currency crises and asset bubbles. The book features ten case studies, around which we provide comprehensive analyses of the causal forces at play, the responses of policymakers and market participants, and their ultimate resolution. It is designed to aid investors, seasoned and nascent, to develop skills for managing money when markets are not functioning normally by providing: (1) a framework to understand how markets behave during crises; (2) a process for making investment decisions; and (3) some practical guidelines for the bust phase of a bubble and the eventual market recovery.