Historical Trends in Capital Markets

This chapter explores the evolution of capital markets from the 16th century, focusing on how socio-economic changes, like the outlawing of feudalism, influenced financial behaviors and investment strategies. It highlights key historical events, such as World War I, that reshaped the landscape for the wealthy elite and their impact on economic trends, particularly interest rates. The discussion also looks at the correlation between war, capital durability, and the unprecedented peace among advanced economies since 1945 and its lasting effects on asset pricing.