About the Book: Why do investors chase loss-making AI stocks, overlook profitable opportunities, or react irrationally to events unrelated to business fundamentals? In The Madness of Markets, finance professor Alex Edmans explores how emotions, social contagion and psychological biases influence stock market behaviour and investment decisions. Discover how even experienced investors fall prey to irrational thinking—and how to turn their mistakes into opportunities. Combining behavioural finance with practical investing strategies, this insightful guide helps readers identify market misjudgements, avoid costly errors and make smarter investment decisions in an unpredictable financial world.