Predicting big market crashes is a difficult business, many would say impossible. If enough investors believe a cataclysm is coming, their selling will simply make it happen sooner — a dynamic that would quickly render any convincing forecasting method obsolete.
Nonetheless, a pair of physicists — drawing inspiration from the market for bitcoin, no less — might be on to something .
Jonathan Donier and Jean-Philippe Bouchaud, both of whom work at Paris-based hedge fund Capital […]
