Discrete Scaling in Stock Markets Before Crashes
arXiv:cond-mat/9509033 · doi:10.1142/S021797929600204X
Abstract
We propose a picture of stock market crashes as critical points in a hierachical system with discrete scaling. The critical exponent is then complex, leading to log-periodic fluctuations in stock market indexes. We present ``experimental'' evidence in favor of this prediction. This picture is in the spirit of the known earthquake-stock market analogy and of recent work on log-periodic fluctuations associated with earthquakes.
7 pages LaTeX, 5 uuencoded Postscript figures
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