The acclaimed New York Times bestseller—“the rare business history that reads like a thriller” (Publishers Weekly)—that tells the story of how we came to believe that financial markets knew best and how that belief steered us wrong, now updated to reflect the latest academic research and market developments.

The financial crisis of 2008 and the subsequent Great Recession seemed to demolish many cherished beliefs—most significantly, the theory that financial markets always get things right. Justin Fox’s The Myth of the Rational Market, first published in 2009, explained where that idea came from and where it went wrong.

Our reliance on financial markets hasn’t gone away, and the book’s themes are as relevant today as in the aftermath of the financial crisis. An intellectual whodunit, The Myth of the Rational Market brings to life the people and ideas that forged modern finance and investing—from the formative days of Wall Street through the Great Depression to the financial escapades shaping our lives and economy today. It’s a tale of professors who made and lost fortunes, battled fiercely over ideas, beat the house at blackjack, wrote bestselling books, and played major roles on the world stage.

In this new edition, Justin Fox revisits his classic text. All-new material includes

• An update on developments in academic economics and finance, which launched rational market theory and are still contending with how much imperfection and irrationality to incorporate into models of financial markets.
• A look at what these theories have to tell us about such market phenomena as the triumph of index funds, the rise of cryptocurrencies, meme stocks, the artificial intelligence investing boom, and Elon Musk.

Supplemental enhancement PDF accompanies the audiobook.