RT Journal Article
SR Electronic
T1 Practical Applications of Can We Predict Stock Market Crashes?
JF Practical Applications
FD Institutional Investor Journals
SP 1
OP 5
DO 10.3905/pa.2015.2.4.096
VO 2
IS 4
A1 Sergio M. Focardi
A1 Frank J. Fabozzi
A1 Barbara J. Mack
YR 2015
UL https://pm-research.com/content/2/4/1.2.abstract
AB Can We Predict Stock Market Crashes? Sergio M Focardi Frank J Fabozzi In this Practical Applications report, Sergio Focardi and Frank Fabozzi discuss how they employ complexity economics as a foundation for their research published in The Journal of Portfolio Management ’s 40th Anniversary Issue . Focardi describes how he and Fabozzievaluate the creation and destruction of bubbles.Complexity economics is the proposition that the economy is a multi-agent system that is constantly in motion and reconstructing itself. Focardi and Fabozzi show how complexity economics can help assess the probability of major reversals of market trends and estimate the likelihood, timing and impact of a financial crisis.Focardi is a Visiting Professor of Finance at Stony Brook University (New York) and Fabozzi is Professor of Finance at EDHEC Business School and a member of the EDHEC Risk Institute.