The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street

“Do we really need yet another book about the financial crisis? Yes, we do—because this one is different….A must-read for anyone who wants to understand the mess we’re in.”
—Paul Krugman, New York Times Book Review

“Fox makes business history thrilling.”
—St. Louis Post-Dispatch

A lively history of ideas, The Myth of the Rational Market by former Time Magazine economics columnist Justin Fox, describes with insight and wit the rise and fall of the world’s most influential investing idea: the efficient markets theory. Both a New York Times bestseller and Notable Book of the Year—longlisted for the Financial Times Business Book of the Year Award and named one of Library Journal Best Business Books of the Year—The Myth of the Rational Market carries readers from the earliest days of Wall Street to the current financial crisis, debunking the long-held myth that the stock market is always right in the process while intelligently exploring the replacement theory of behavioral economics.

• Against the Gods: The Remarkable Story of Risk
• Adaptive Markets: Financial Evolution at the Speed of Thought
• The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It
• Devil Take the Hindmost: A History of Financial Speculation
• When Genius Failed: The Rise and Fall of Long-Term Capital Management
• A Random Walk down Wall Street: The Time-tested Strategy for Successful Investing
• Capital Ideas: The Improbable Origins of Modern Wall Street
• The Misbehavior of Markets: A Fractal View of Financial Turbulence
• More Money Than God: Hedge Funds and the Making of a New Elite (Council on Foreign Relations Books (Penguin Press))
• Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated