Spotting Financial Bubbles Before They Burst
A multi-disciplinary framework through which to spot financial bubbles before they burst.
Based on a popular undergraduate seminar, entitled Financial Booms & Busts, taught by the author at Yale University, Boombustology presents a multi-disciplinary framework for identifying unsustainable booms and forthcoming busts.
The magnitude of our recent financial crisis mandates a firm understanding of this phenomenon before the next crisis occurs. Boombustology provides an in-depth look at several major booms and busts and offers a solid framework for thinking about future occurrences.
- Examines why booms and busts are not random and can therefore be identified
- Focuses upon various theoretical and disciplinary lenses useful in the study of booms and busts
- Contains a framework for thinking about and identifying forthcoming financial bubbles including several tell-tale indicators of a forthcoming bust.
- Illustrates the framework in action by evaluating China as a potential bubble in the making.
If you want to make better decisions in today’s turbulent investment environment, understanding the dynamics of booms and busts is the best place the start. Boombustology can help you achieve this elusive goal.
Praise for Boombustology
“By employing an unusually diverse set of perspectives to increase understanding of the character of financial crises, Mansharamani gives his readers a valuable set of guideposts to help them find a safe path through future market disruptions.”
—David F. Swensen, Chief Investment Officer, Yale University
“Asset class bubbles are by far the most important events in the life of both stock markets and economies. Boombustology is a comprehensive, informative, and entertaining look into how bubbles form, what really constitutes a bubble, and, critically, the causes and circumstances of bubbles breaking. It is essential reading for any bubbliophile.”
—Jeremy Grantham, Co-founder and Chief Investment Strategist, GMO
“Imaginative, accessible, and blessedly concise, Boombustology is a Baedeker for these boomy and busty times.”
—James Grant, Grant’s Interest Rate Observer
“If there’s one thing that cleaves Wall Street’s winners from its losers, it’s the ability to say, ‘I’ve seen this movie, and I know how it ends.’ Vikram Mansharamani’s Boombustology will entertain readers with an entire film festival of past, present, and future investment disaster flicks that will make them laugh, make them cry, and save their bacon.”
—William J. Bernstein, bestselling author of The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between
“Investors are attracted to bubbles. To paraphrase Orwell, they find themselves playing with fire without even knowing that fire is hot. Vikram Mansharamani’s highly readable book will set them right. It provides a sound intellectual framework for identifying bubbles before they burst. If you buy only one investment book this year, make it Boombustology.”
—Edward Chancellor, author of Devil Take the Hindmost: A History of Financial Speculation
“Through an artful and accessible melding of theoretical frameworks and historical cases,Boombustology provides the essential tools to identify and navigate the financial booms and busts that can be so hazardous to one’s portfolio. Required reading for all investors.”
—Paul A. Reeder, President, PAR Capital Management
“Who is the better investor: the generalist or the expert specialist? In this spirited book, Vikram Mansharamani brings to life five famous boom-bust episodes and argues for a multidisciplinary, generalist approach. Boombustology is an engaging read for specialists and generalists alike.”
—John Geanakoplos, James Tobin Professor of Economics at Yale University; External Professor, the Santa Fe Institute; and Partner, Ellington Capital Management