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Apr 3, 2022 · Bubble: A bubble is an economic cycle characterized by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the ...
- Will Kenton
- 1 min
Apr 20, 2021 · Getty. A stock market bubble—also known as an asset bubble or a speculative bubble—is when prices for a stock or an asset rise exponentially over a period of time, well in excess of its ...
May 30, 2023 · A stock market bubble is a period of growth in stock prices followed by a fall. Typically prices rise quickly and significantly, growing far beyond their previous value in a short period of time. When they fall, they do so quickly and often below the starting value. A stock market bubble can affect either the market as a whole or a specific ...
Dec 11, 2023 · A market bubble is a rapid rise in the price of stocks or other assets that is not justified by fundamentals and is followed by a sharp fall in prices once investor enthusiasm wanes. Bubbles are ...
- Wayne Duggan
- Contributor
- It's very difficult to predict the timing of a bursting bubble. Economist John Maynard Keynes famously said, "Markets can remain irrational longer...
- Analysts typically use fundamental metrics, such as price-earnings ratio, price-to-sales ratio, price-earnings-to-growth ratio, price-to-free-cash-...
- There's no guaranteed way to avoid losses when a bubble bursts, but financial advisors generally recommend maintaining a diversified investment por...
Nov 20, 2023 · By Jeremy Bowman – Updated Nov 20, 2023 at 3:33PM. A stock market bubble is a significant run-up in stock prices without a corresponding increase in the value of the businesses they represent. A ...
A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation . Behavioral finance theory attributes stock market bubbles to cognitive biases that lead to groupthink and herd behavior.
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