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Irrational Exuberance

Introduction

About the book

The book Irrational Exuberance by Robert J. Shiller (author) centers predominantly upon behavioural economics and market volatility. The sheer unpredictability and unstable nature of the market postulate that the irrational exuberance of the stock and the real estate markets has been ended by an economic slump of a magnitude not seen since the Great Depression of the 1930s. 

 

The lessons from this book are simple yet timeless. It also explains the herd mentality that creates speculative bubbles. The term "irrational exuberance" clearly depicts the mood of the market. 

 

About the book

Robert J. Shiller is a renowned American economist and Nobel Prize winner at the turn of the 21st century. He was a professor at Yale University and is ranked among the most influential economists in the world. He has written on economic topics that range from behavioural finance to real estate and risk management. His book Irrational Exuberance (2000) – a New York Times bestseller – warned that the stock market had become a bubble in March 2000 (the very height of the market top) which could lead to a sharp decline.

 

Buy the book

The book is extremely useful to understand booms and bursts of the stock market and helps you to predict when the next bubble bursts so that you can decrease your risk on investments. We highly recommend you to read the entire book. (affiliate link)

 

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