Search results
- In investing, irrational exuberance is when investor confidence drives asset prices higher than their fundamentals logically justify. This is more than just a marginal rise. It’s best understood as a kind of mania—investors are so confident that an asset will keep rising in value that they completely lose sight of the asset’s intrinsic value.
insights.masterworks.com › finance › what-is-irrational-exuberance-in-investing
People also ask
What does irrational exuberance mean?
Who coined the phrase irrational exuberance?
How did irrational exuberance affect the market?
Is irrational exuberance a speculative bubble?
Apr 8, 2022 · Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify. The term was popularized by former Fed chair...
Apr 27, 2022 · Irrational exuberance is a state of mania. In the stock market, it's when investors are so confident that the price of an asset will keep going up, they lose sight of its underlying value . The phrase was coined by former Federal Reserve Chairman Alan Greenspan in 1996.
- Kimberly Amadeo
Irrational exuberance" is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The phrase was interpreted as a warning that the stock market might be overvalued.
Apr 4, 2024 · Irrational exuberance refers to the intense enthusiasm of investors influencing investment decisions and driving the asset prices to a value more than the value based on its fundamental analysis. It causes asset price bubbles manifesting exceptional price growth with no reason but investor enthusiasm backed by optimism.
Mar 19, 2024 · “Irrational exuberance” refers to the excessive enthusiasm or optimism that leads to inflated asset prices, often detached from their intrinsic value. This exuberance is typically characterized by a strong belief that the good times will continue indefinitely.
Oct 1, 2019 · Economics. Irrational Exuberance. Written By. InvestingAnswers Expert. Updated October 1, 2019. What is Irrational Exuberance? The phrase irrational exuberance was coined by Alan Greenspan, chairman of the Federal Reserve, in a December 5, 1996, speech to the American Enterprise Institute.
Aug 2, 2023 · "Irrational exuberance is the psychological basis of a speculative bubble," wrote economist Robert Shiller in his 2000 book, Irrational Exuberance. He defined a bubble "as a situation in which ...
