Crash Stories

  • Harold L. Vogel


Crashes differ from bubbles in many ways. In bubbles, there’s a fear of missing out (FOMO). In crashes, which crystallize faster, there’s a fear of staying in (FOSI). This chapter reviews and compares crash episodes, introduces a crash intensity metric, and shows that diversification fails to protect, liquidity disappears, there’s no place to hide, and hedging is expensive and typically ineffective. In a bear market, normally the only asset class in which real purchasing power and optionality rises is cash.


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© The Author(s) 2018

Authors and Affiliations

  • Harold L. Vogel
    • 1
  1. 1.New YorkUSA

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