Reading, Blogging, Reflecting – end of the year

The end of the year usually is a good time for me to catch up on my reading, and to reflect on this year’s events. I have been doing both over the past few days, usually sipping eggnog around the pool

I wanted to share a few of articles I found very interesting with you.

The world this year, from the Economist, reflects on 2008. Despite all the dramas of the past year (Financial crisis, Georgia, Zimbabwe), 2008 will be remembered as a special year thanks to Obama. And to prove we can have a laugh even during difficult times, I invite you to play the Credit Crunch Board Game.

Deciphering the Mystery of Equity Market Bubbles, from the Credit Suisse research team, analyses the investors’ psychology factor and how it Markets. Apparently, in bubble cycles, skeptics largely exit the markets, leaving optimists to push asset values to excessive levels. The study observations are very interesting.

- Common psychological factors give bubbles similar patterns near the top and during the steep slide that follows.
- Bubbles have occurred more frequently in recent decades.
- Bubbles tend to have similar durations, with the time between the top and bottom lasting roughly 2.5 years.
- While the wind down patterns has been roughly similar, the duration has steadily become shorter, likely due in part to increased government intervention capabilities and willingness to use them.

I’ll finish with my two favourite bloggers latest gems. Two ways to deal with “no” by Seth Godin, which is a very simple, impactful and evident reminder on how to react to a rejection. And Bits Of Destruction by Fred Wilson, which reflects on the influence of the internet and new technologies in the current downturn and how it impacts the mainstream economies.

Good read !