Stock Market Crashes: Predictable and Unpredictable and What to Do about Them

In Forex Books Reviews by

This is an important book for those who are interested in investing in the Stock Market. One is made privy to studies pertaining to the times the Stock Market had crashed. The discussions are comprehensive in that both big and small are touched, may it be through the burst of what are called “bubbles” or because of another market-related incident. 

A bubble, by definition, is an instance wherein rise simply because they arise, and these go above the fundamental values. A bubble may be a huge jump in prices preceded by a sudden plunge. Looking into the existence of bubbles, how the appearance of such can be predicted, and the finding of sound exit strategies for such is the main focus of this book. 

On top of these, what the authors had done well in is it’s outlining of the great bubbles that had appeared across history for the span of a hundred years.

The book had effectively presented four models that would successfully help to avert gargantuan stock market declines. The author had been reliable in that he gives sound advice on what should be done in the event of a crash.

About the Authors

The book was written by a triumvirate of Stock Market analysts and experts: Dr. William T. Ziemba, Mikhail Zhitlukhin, and Sebastien Lleo. 

Dr. William T. Ziemba is a well-known researcher for the field of finance. He specialized and taught Financial Modeling and Stochastic Optimization. He had also received recognition as an Emeritus in the Sauder School of Business at the University of British Columbia.

Boasting of expansive experience in the investment industry, Dr. Sébastien Lleo is an Associate Professor of Finance and Director of the Doctoral Program at NEOMA Business School in France. He had also been selected to be the Lead Researcher of the “Risk Perform” project by the Région Champagne Ardennes and European Union. These are just to mention a few of his credentials.  

Mikhail Zhitlukhin is a researcher at the Steklov Mathematical Institute and a lecturer at the Higher School of Economics, two institutions both located in Moscow, Russia. He had finished his Doctorate from the Stekhov Institute and the University of Manchester in the United Kingdom. 

A Magnum Opus

With the minds behind it, the book “Stock Market Crashes: Predictable and Unpredictable and What to Do About Them” is one that every Stock Market investor need to have in his or her library. It is amongst the body of work that herds investors into doing right by their ventures as they give esteem to the industry. The language may prove challenging to those not deep into the culture, but with proper exposure, this book will be one’s guide to critical analysis and decision-making.