asset price bubbles

Asset price bubbles refer to a situation in the market where the prices of certain assets, such as stocks, real estate, or commodities, rise rapidly and significantly above their intrinsic values, driven by frenzied speculation and irrational exuberance. These price surges are not supported by economic fundamentals, leading to a speculative bubble that eventually bursts, causing a sharp and often sudden decline in prices as investors rush to sell the overvalued assets.

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