speculative bubbles
Hype-driven market inflation
Speculative bubbles are periods when asset prices rise far beyond their intrinsic value, driven by enthusiasm and the expectation of further gains rather than fundamentals.
Investors buy not because something is worth the price, but because they believe someone else will pay more.
When confidence falters, prices collapse rapidly: The dot-com crash was a classic speculative bubble.
Also called market bubbles or simply bubbles.
- overvaluationAppraising too highly
- irrational exuberanceUnjustified collective market optimism
- leverageBorrowed capital for amplified returns
- herd behaviorMimicking the group's actions
- animal spiritsInstinctive economic confidence
fear of missing out · systemic risk · regulatory oversight · Ponzi · asset bubbles · house of cards · financial instability · greed · easy money · hot money · cognitive biases · price volatility · confirmation bias · bust · derivatives · groupthink · market volatility · fever
- market bubblestulip mania, asset bubbles, tulip mania, irrational exuberance, greater fool theory
- Wall Street historystock exchange, ticker tape, bull markets, bear markets, short selling
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- commodities tradingcommodities, commodity markets, commodity prices, futures, futures contracts
speculative bubblesfair value
Reasonable exchange price
intrinsic value · value investing · undervaluation · due diligence
speculative bubblesbear markets
Sustained securities decline
capitulation · fire sales · undervaluation · bank runs · credit crunches
speculative bubblesprice stability
Consistent general price levels
bear markets · steady growth · deflation · organic growth · deleveraging