# Professor Xavier Gabaix's research on crashes in financial markets is highlighted

1 Faculty News May 20, 2016 ![Barron's logo](/sites/default/files/styles/246w/public/assets/images/con_031072.jpg?itok=FtY-yu99)>

Excerpt from [Barron's](http://www.barrons.com/articles/stop-worrying-about-the-stock-market-crashing-1463743491) -- "[Xavier Gabaix](http://www.stern.nyu.edu/faculty/bio/xavier-gabaix), a finance professor at New York University, has derived a crash-frequency formula that he believes captures a universal trait of all markets, not just equity markets or those in the U.S. According to that formula, the odds of a 12.8% crash in any given six-month period are 0.92%, almost as low as the actual frequency in the U.S. stock market over the last century."

[Read more](http://www.barrons.com/articles/stop-worrying-about-the-stock-market-crashing-1463743491)