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2006-02-28

Physicists Predict Stock Market Crashes


Physicists Predict Stock Market Crashes from PhysOrg.com

On Monday, October 19, 1987 – infamously known as “black Monday” – the Dow fell 508 points, or 22.9%, marking the largest crash in history. Using an analytical approach similar to the one applied to explore heart rate, physicists have discovered some unusual events preceding the crash. These findings may help economists in risk analysis and in predicting inevitable future crashes.
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