Its curvature foreshadows the next financial bubble
An international team of interdisciplinary researchers has identified mathematical metrics to characterize the fragility of financial markets. Their paper "Network geometry and market instability" sheds light on the higher-order architecture of financial systems and allows analysts to identify systemic risks like market bubbles or crashes.
With the recent rush of small investors into so-called meme stocks and reemerging interest in cryptocurrencies talk of market instability, rising volatility, and bursting bubbles is surging. However, "traditional economic theories cannot foresee events like the US subprime mortgage collapse of 2007" according ...













