Why stock markets crash

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1. qubexSep 2022
   The Computational Beauty of Nature, Gary William Flake (1997) Why Stock Markets Crash, Didier Sornette (2003)
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2. igorkrawMar 2020
   Since I'm mainly interested in risk and volatility, this list might be a bit biased but here we go:

   A random walk down Wallstreet

   Options and volatility pricing, by Natenberg

   Why stock markets crash, by Didier sornette

   Manias, panics and Crashes by Aliber and Kindleberger

   Debt: the first 5000 years

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3. qubexMar 2020
   It’s not ‘basic’, but I strongly recommend Why Stock Markets Crash by Didier Sornette.
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4. oarabbus_Jun 2019
   Why Stock Markets Crash by Didier Sornette is the book which most rigorously applies physics to economics that I have ever read.
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5. oarabbus_Feb 2019
   If anyone is interested in this sort of thing, I'd highly recommend the (very technical) book Why Stock Markets Crash by Didier Sornette - a guy who comes from a Physics/Geophysics background.

   tl;dr - Stock markets crash because of fractals/chaos/complex systems. And there's no such thing as an equilibrium (in the stock market) because if there was, everyone would agree on the true value of a stock and no one would buy or sell for that reason.

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6. qubexSep 2016
   Mathematically trained economist here.

   Why Stock Markets Crash by Didier Sornette The complete oeuvre of Paul Wilmott

   (The Computational Beauty of Nature, by Gary W. Flake because it's wonderful and puts you in the right frame of mind)

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