Irrational Exuberance

  • by Robert J. Shiller
  • Narrated by Robert J. Shiller
  • 5 hrs and 56 mins
  • Abridged Audiobook

Publisher's Summary

In this bold and potentially urgent volume, Robert J. Shiller, a respected expert on market volatility, offers an unconventional interpretation of recent U.S. stock market highs and shows that Alan Greenspan's term "irrational exuberance" is a good description of the mood behind the market. He warns that poorer performance may be in the offing and tells us how we - as a society and individually - can respond.Shiller credits an unprecedented confluence of events with driving stocks to uncharted heights. He analyzes the structural and psychological factors that explain why the Dow Jones Industrial Average tripled between 1994 and 1999, a level of growth not reflected in any other sector of the economy. In contrast to many analysts, Shiller stresses circumstances that alter investors' perceptions of the market. These include the entry of the Internet into American homes, the misimpression that the aging of the baby-boom generation builds long-term protection into the market, and herd behavior, such as day-trading. He also examines cultural factors, including sports-style media coverage of the Dow's ups and downs and "new era" thinking about the economy. He considers - and challenges - efforts to rationalize exuberance that are based on either efficient-markets theory, narrowly construed, or the claim that investors have only recently learned the true value of the market.Irrational Exuberance is a must-listen for individual investors as well as investment professionals, pension-plan sponsors, and endowment managers everywhere. It will be studied by policy makers and anyone from Wall Street to Main Street who doesn't want to be caught sitting on the speculative bubble if (or when) it bursts.Hear an exclusive interview with Robert J. Shiller.


What the Critics Say

Nominee for Audio Publishers Association 2001 Audie Award, Business Information
"No one has explored the strange behavior of the American investor in the 1990s with more authority┬┐" The New York Times


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Customer Reviews

Most Helpful

Very academic, but thorough and informative

This audiobook is not for the faint of heart!

This is an academic overiew of behavioral finance. Not as thorough as a textbook, but it has the same flavor. With the acadmic perspective without the thoroughnes of an academic text, it reads like a litnay of hypothesis about the 'irrationality' of the stock market interspersed with anecdotal statistics and historical examples.

The book has a very one-sided view of the central controversy in the economics of Finance, which is the rationlity of the financial markets. His strong endorsement of behavorial finance and emphatic rejection of Efficient Market Theory detract from the power of some of the hypothesis he puts forward.

Because it is abridged, I cannot say if the book lost much in the abridgement. Being read by the author (a Yale economics professor), I would hope that this version keeps the essence of the unabridged text.

If you can survive what seems, at times, an interminable academic lecture, this book does offer lots of facts and insights useful to understanding how the financial markets funtion.
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- Timothy

in plain english

great explanation of "what happened" during the bubble years and a must hear for anyone that invests.
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- chris m.

Book Details

  • Release Date: 10-31-2000
  • Publisher: Random House Audio