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What is a stock market bubble?

Bubbles can occur to all kinds of assets in addition to stocks, from real estate and collectibles, to commodities and cryptocurrencies. How Does a Stock Market Bubble Happen? A stock market bubble is driven by raw speculation.

What happens if a stock market bubble bursts?

Some burst bubbles have led to long stretches of poor performance known as lost decades, during which stock markets stagnate and economic growth slows. After the 1929 stock market crash, for instance, a drought in market returns lasted through 1939.

What are asset market bubbles?

These bubbles can include the overall stock market, exchange-traded funds (ETFs), or equities in a particular field or market sector—like Internet-based businesses, which fueled the dotcom bubble of the late 1990s. Asset Market bubbles involve other industries or sections of the economy, outside of the equities market.

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