Changes in Asset Allocation during the Subprime Crisis: Affecting Sectors and Financial Securities

After the dot-com bubble, nobody has imagined what low interest rates could eventually bring: the subprime mortgage financial crisis. The problem started in 2006 in the United States and got to be a global problem in July 2007. Foreclosures followed one after the other and stock prices collapsed. This book attempts to find out how investors reallocated their assets during the crisis and whether a trend can be seen. Was it the risky or risk-free investments investors preferred? Emerging or industrialised countries and did preferred sectors changed at all? If this all changed, did human emotions and cognitive biases have an effect on the reallocation?It is also argued whether asset reallocation happens because of a more moderate capital allocation line. The research also raise more quiestions: what if the capital allocation line doesn't get more moderate, even though asset reallocation would confirm the opposite?This research should reveal the current subprime problem and should be useful to professionals in the field of Finance, or anyone else who may be interested in Investments or capital flow during a financial crisis.