Issue Information

• DOI: http://doi.org/10.1002/jcaf.22378
• Date: 01 October 2020
• Published date: 01 October 2020

VOLUME 31, NUMBER 4 •OCTOBER 2020

Other

9Robinhoods and the Nasdaq whale: The makings of the 2020 big‐tech bubble

Damir Tokic

This article discusses the big‐tech bubble of 2020, which has all characteristics of the

positive‐feedback trading model bubble. The rational speculation activity successfully

attracted the positive feedback traders (or the retail army of novice investors), which

overpowered the rational arbitrageurs (fundamentally driven hedge funds and market

makers) and inflated the stock price valuations well beyond the fundamentals.

Blind Peer Reviews

15 Impact of the coronavirus pandemic crisis on the financial system in the eurozone

Takayasu Ito

The stress in the financial system in five eurozone countries (Germany, France, Italy,

Portugal, and Spain) was not connected before the COVID‐19 pandemic crisis. Credit

default swap premiums were priced independently, not incorporating the sovereign risk of

the eurozone as a whole. However, during the period of pandemic crisis, the stress was

connected in five countries. The financial market was cautious about the increased fiscal

deficit caused by massive spending in the pandemic crisis, fearing that the deficit might

cause increased risk in the financial system of the eurozone as a whole. The symptoms of

financial crisis sprouted after the pandemic crisis started. We need to monitor whether

countermeasures taken by European Central Bank (ECB) and European Union (EU)

contribute to the stability of financial system in the eurozone.