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Apr 8, 2022 · What Is Irrational Exuberance? Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify.
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. It's also a book by Robert Shiller describing the 2000 stock market bubble.
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.
May 23, 2024 · Irrational exuberance refers to the enthusiasm or optimism exhibited by the investors without going for rational thinking, causing an exponential rise in asset prices. The increase in asset price usually will not have a positive correlation with its intrinsic value.
Referred to as a state of frenzy, irrational exuberance means that traders’ enthusiasm for an asset is more positive than can be fundamentally justified. Traders purchase more quantities of a stock, assuming its value has potential to grow.
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.
Jun 30, 2024 · Definition. When investors’ enthusiasm drives the prices of an asset higher as compared to the asset’s fundamentals, this is called irrational exuberance. It also refers to the optimism shown by investors without choosing rational thinking, which causes an unexpected increase in asset prices.
Nov 17, 2021 · Irrational Exuberance Investing Definition 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.
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...
