Why Stock Markets Crash - (Princeton Science Library) by Didier Sornette (Paperback)

The book "Why Stock Markets Crash" by Didier Sornette is a groundbreaking analysis of the complex systems that drive stock market crashes.

This book provides a fresh perspective on the causes of market failures, proposing a general theory of how, why, and when stock markets crash.

The author's vast experience in both natural and social sciences enables him to model and predict phenomena as diverse as earthquakes, global warming, demographic patterns, financial crises, and material failure. The book offers a step-by-step analysis of leading-edge physical and statistical modeling techniques, unearthing remarkable insights and predictions, including the "end of the growth era" around 2050.

The author probes major historical precedents, from the Dutch tulip mania to the Great Crash of 1929, revealing that most explanations fail to account for subtle bubbles laying the groundwork for catastrophe. This book is essential reading for investors, investment professionals, physicists, geologists, biologists, economists, and anyone seeking a genuine understanding of looming financial disasters.

The author's expertise in non-linear, complex systems makes this book a must-read for anyone interested in the emerging field of econophysics.

With its accessible writing style and clear figures, "Why Stock Markets Crash" is bound to raise scientific interest in this exciting and sometimes fearsome world of stock markets.