Market insanity: a brief guide to diagnosing the madness in the stock market

An engaging and accessible primer which applies modern behavioral finance to equity markets.

It helps readers understand how logical investment decisions can be betrayed by what Taillard calls 'the insanity', all those behavioral quirks which cause us to achieve less than optimal utility.

The book describes how limited information, habit, the rules of the game, asymmetric information and ego blend together in potentially toxic ways in market environments, thus creating bubbles, stock runs, and more prosaically, even 'normal' equity prices.