NIKLAS HAGEBACK has extensive experience in the financial sector working at tier-one financial institutions and consulting firms, such as Deutsche Bank, KPMG, and Goldman Sachs, holding regional risk management and oversight roles in both Europe and Asia. This included leading the implementation of operational risk and economic capital frameworks and also engaging in the public debate through a number of articles published, public presentations and regulatory lobbying.He currently resides in Hong Kong where he is running a money management firm as well as managing a portfolio of financial software start-up firms with a special focus on research and product development in the area of behavioural finance.

• Acknowledgments ixIntroduction 1CHAPTER 1 Psychology: A Primer 7Some Key Psychological Concepts 9The Unconscious 13Conclusion 21Notes 22References 24CHAPTER 2 Archetypes and Symbols 27Carl Gustav Jung 27Archetypes: A Background 31Why Do Archetypes Activate? 40Symbols: The Tangible Manifestations of Archetypes 45Conclusion 50Notes 50References 52CHAPTER 3 How Archetypes Influence and Impact Behaviour 55Characteristics of the Activation of an Archetype 55Projections and Other Defense Mechanisms 56The Role of Scapegoats 58Shadow Projections 58Zeitgeist 59Mass Hysteria and Panics 62Conclusion 65Notes 65References 66CHAPTER 4 Archetypal Influences in the Financial Markets 67Financial Bubbles 67Animal Spirits 71An Archetypal Perspective on the Development of Financial Bubbles 74Conclusion 77Notes 77References 78CHAPTER 5 Existing Approaches to Capture Sentiments in Financial Markets, and Why They Do Not Work 81Behavioural Finance 82Technical Analysis 83Efficient Market Hypothesis 84Black Swans 86Social Mood 87Emotion Words 89Conclusion 89Notes 90References 91CHAPTER 6 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part I: Building Blocks 93Linking Symbols to Archetypes 96Capturing Symbols 98Conclusion 107Notes 108References 109CHAPTER 7 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part II: The Data 111Data Sources 112Capture and Cleansing 114Relativisation of Symbol Words 119Two Article Examples 120Conclusion 128Notes 128References 129CHAPTER 8 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part III: The Model 131Signal Theory 133Correlation Testing 136Testing the Time Series against Known Cycles 138Constructing Archetypal Composite Indexes 138Backtesting and Calibration 141Conclusion 142Notes 143References 143CHAPTER 9 Examples of Archetypal Influences on the Formation of Financial Bubbles 145The Dot-Com Bubble 148The US Property Bubble 155Conclusion 159Notes 160References 161CHAPTER 10 Conclusion 163How Archetypes Play Out 164Areas for Further Research 165Time Constants 166Multiple Archetypes 166Tipping Points 167Subliminal Stimulation 168Archetypal Influences in Other Areas 169Archetypal Influences in Other Cultures and Languages 170Are the Collective Unconscious and Its Archetypes Constraining Free Will? 171Influences on Finance 172About the Author 175Index 177

NIKLAS HAGEBACK has extensive experience in the financial sector working at tier-one financial institutions and consulting firms, such as Deutsche Bank, KPMG, and Goldman Sachs, holding regional risk management and oversight roles in both Europe and Asia. This included leading the implementation of operational risk and economic capital frameworks and also engaging in the public debate through a number of articles published, public presentations and regulatory lobbying.He currently resides in Hong Kong where he is running a money management firm as well as managing a portfolio of financial software start-up firms with a special focus on research and product development in the area of behavioural finance.

• Acknowledgments ixIntroduction 1CHAPTER 1 Psychology: A Primer 7Some Key Psychological Concepts 9The Unconscious 13Conclusion 21Notes 22References 24CHAPTER 2 Archetypes and Symbols 27Carl Gustav Jung 27Archetypes: A Background 31Why Do Archetypes Activate? 40Symbols: The Tangible Manifestations of Archetypes 45Conclusion 50Notes 50References 52CHAPTER 3 How Archetypes Influence and Impact Behaviour 55Characteristics of the Activation of an Archetype 55Projections and Other Defense Mechanisms 56The Role of Scapegoats 58Shadow Projections 58Zeitgeist 59Mass Hysteria and Panics 62Conclusion 65Notes 65References 66CHAPTER 4 Archetypal Influences in the Financial Markets 67Financial Bubbles 67Animal Spirits 71An Archetypal Perspective on the Development of Financial Bubbles 74Conclusion 77Notes 77References 78CHAPTER 5 Existing Approaches to Capture Sentiments in Financial Markets, and Why They Do Not Work 81Behavioural Finance 82Technical Analysis 83Efficient Market Hypothesis 84Black Swans 86Social Mood 87Emotion Words 89Conclusion 89Notes 90References 91CHAPTER 6 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part I: Building Blocks 93Linking Symbols to Archetypes 96Capturing Symbols 98Conclusion 107Notes 108References 109CHAPTER 7 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part II: The Data 111Data Sources 112Capture and Cleansing 114Relativisation of Symbol Words 119Two Article Examples 120Conclusion 128Notes 128References 129CHAPTER 8 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part III: The Model 131Signal Theory 133Correlation Testing 136Testing the Time Series against Known Cycles 138Constructing Archetypal Composite Indexes 138Backtesting and Calibration 141Conclusion 142Notes 143References 143CHAPTER 9 Examples of Archetypal Influences on the Formation of Financial Bubbles 145The Dot-Com Bubble 148The US Property Bubble 155Conclusion 159Notes 160References 161CHAPTER 10 Conclusion 163How Archetypes Play Out 164Areas for Further Research 165Time Constants 166Multiple Archetypes 166Tipping Points 167Subliminal Stimulation 168Archetypal Influences in Other Areas 169Archetypal Influences in Other Cultures and Languages 170Are the Collective Unconscious and Its Archetypes Constraining Free Will? 171Influences on Finance 172About the Author 175Index 177

NIKLAS HAGEBACK has extensive experience in the financial sector working at tier-one financial institutions and consulting firms, such as Deutsche Bank, KPMG, and Goldman Sachs, holding regional risk management and oversight roles in both Europe and Asia. This included leading the implementation of operational risk and economic capital frameworks and also engaging in the public debate through a number of articles published, public presentations and regulatory lobbying.He currently resides in Hong Kong where he is running a money management firm as well as managing a portfolio of financial software start-up firms with a special focus on research and product development in the area of behavioural finance.

• Acknowledgments ixIntroduction 1CHAPTER 1 Psychology: A Primer 7Some Key Psychological Concepts 9The Unconscious 13Conclusion 21Notes 22References 24CHAPTER 2 Archetypes and Symbols 27Carl Gustav Jung 27Archetypes: A Background 31Why Do Archetypes Activate? 40Symbols: The Tangible Manifestations of Archetypes 45Conclusion 50Notes 50References 52CHAPTER 3 How Archetypes Influence and Impact Behaviour 55Characteristics of the Activation of an Archetype 55Projections and Other Defense Mechanisms 56The Role of Scapegoats 58Shadow Projections 58Zeitgeist 59Mass Hysteria and Panics 62Conclusion 65Notes 65References 66CHAPTER 4 Archetypal Influences in the Financial Markets 67Financial Bubbles 67Animal Spirits 71An Archetypal Perspective on the Development of Financial Bubbles 74Conclusion 77Notes 77References 78CHAPTER 5 Existing Approaches to Capture Sentiments in Financial Markets, and Why They Do Not Work 81Behavioural Finance 82Technical Analysis 83Efficient Market Hypothesis 84Black Swans 86Social Mood 87Emotion Words 89Conclusion 89Notes 90References 91CHAPTER 6 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part I: Building Blocks 93Linking Symbols to Archetypes 96Capturing Symbols 98Conclusion 107Notes 108References 109CHAPTER 7 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part II: The Data 111Data Sources 112Capture and Cleansing 114Relativisation of Symbol Words 119Two Article Examples 120Conclusion 128Notes 128References 129CHAPTER 8 Developing a Conceptual Measurement Methodology Based on Archetypal Forces, Part III: The Model 131Signal Theory 133Correlation Testing 136Testing the Time Series against Known Cycles 138Constructing Archetypal Composite Indexes 138Backtesting and Calibration 141Conclusion 142Notes 143References 143CHAPTER 9 Examples of Archetypal Influences on the Formation of Financial Bubbles 145The Dot-Com Bubble 148The US Property Bubble 155Conclusion 159Notes 160References 161CHAPTER 10 Conclusion 163How Archetypes Play Out 164Areas for Further Research 165Time Constants 166Multiple Archetypes 166Tipping Points 167Subliminal Stimulation 168Archetypal Influences in Other Areas 169Archetypal Influences in Other Cultures and Languages 170Are the Collective Unconscious and Its Archetypes Constraining Free Will? 171Influences on Finance 172About the Author 175Index 177