Why Stock Markets Crash
Critical Events in Complex Financial Systems
by:
Didier Sornette
in:
Investing
Summary:
The book explores the underlying principles and dynamics that cause stock markets to crash, using concepts from physics and complex systems theory. It examines historical market crashes, identifies patterns and precursors to these events, and discusses the possibility of predicting future financial crises through scientific analysis.
Key points:
1. Herd Behavior: Investors often copy each other, leading to overpriced assets and bubbles.
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