Didier Sornette: Crash

Didier Sornette is French scientist. Explore interesting quotes on crash.
Didier Sornette: 54 quotes0 likes

“According to the academic world view that markets are efficient, only the revelation of a dramatic piece of information can cause a crash, yet in reality even the most thorough post-mortem analyses are typically inconclusive as to what this piece of information might have been. For traders and investors, the fear of a crash is a perpetual source of stress, and the onset of the event itself always ruins the lives of some of them.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 1, Financial Crashes: What, How, Why, And When?, p. 3.

“Indeed, the frequency of crashes in the Monte Carlo simulations was much smaller than the frequency of crashes in the real data: if one of the most frequently used benchmarks of the industry is incapable of reproducing the observed frequency of crashes, this indeed means that there is something to explain that may require new concepts and methods.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 9, Prediction Of Crashes And Antibubbles, p. 327.

“At another level, market crashes constitute beautiful examples of events that we would all like to forecast. The arrow of time is inexorably projecting us toward the undetermined future. Predicting the future captures the imagination of all and is perhaps the greatest challenge.”

Didier Sornette

Preface, p. xvi.
Why Stock Markets Crash - Critical Events in Complex Systems (2003)

“A bubble that goes up is just one that could have crashed but did not.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 5, Modeling Financial Bubbles And Market Crashes, p. 153.

“Positive feedbacks, when unchecked, can produce runaways until the deviation from equilibrium is so large that other effects can be abruptly triggered and lead to ruptures and crashes.”

Didier Sornette

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 4, Positive Feedbacks, p. 82.