The Madness of Markets

In this smart, engaging book, Edmans offers a masterclass on the psychological forces that shape financial markets and investment decisions. The Madness of Markets is a must-read for anyone interested in behavioural finance.

Katy Milkman, Professor, The Wharton School and author of HOW TO CHANGE

Alex Edmans has an extraordinary knack for turning your preconceptions about business and the economy on their head. The Madness of Markets is no exception. A clear, penetrating look at how even the most rational brains can be swayed by mood and momentum. The ideal user's guide to the next financial bubble.

Ed Conway, financial journalist and author of MATERIAL WORLD

The Madness of Markets is essential reading for anyone who wants to understand how markets work. Grounded in sound research, Alex Edmans entertainingly reveals what drives the market’s mood swings and how to capitalize on the opportunities they create.

Michael Mauboussin, author of MORE THAN YOU KNOW and Managing Director, Morgan Stanley

We sometimes forget that… the line between crowd wisdom and crowd madness is a fine one. This book by Professor Edmans reminds us of that truth, and it is filled with useful insights for investors, while being fun to read. While many behavioural finance books are centered on how investor psychology can skew pricing, this book follows through by offering actionable advice on how investors can take advantage of these mistakes.

Aswath Damodaran, Professor, NYU Stern School of Business

A fascinating and indispensable guide to the hidden psychology that drives markets. Alex Edmans brilliantly reveals how emotion, bias, and inertia lead even the smartest investors astray – and provides practical lessons for investing more wisely.

Annie Duke, decision strategist and author of THINKING IN BETS AND QUITS

At a time when markets often seem to be going mad, amid wild AI hype, Edmans’ book offers a cool-headed compass that enables you to navigate the world of finance and - most importantly - your own emotions. Punchy, witty and provocative, this enables anyone to work out whether they are over or under-reacting to events, and chart a more level-headed approach to reading market signals.

Gillian Tett

This book serves two purposes: it is an incredibly useful and entertaining handbook - but it is also a warning. Numbers often lie - in large part perhaps we prefer it that way.

Rory Sutherland, Vice Chairman of Ogilvy UK, and author of ALCHEMY