Term

Bubble

A state of the market in which prices rise not because a thing is useful but because people expect them to keep rising. It usually ends in a crash.

Boomerang: Travels in the New Third World, Michael Lewis

Explained in

• Boomerang: Travels in the New Third World, Michael Lewis
• A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Burton G. Malkiel

  A market situation in which prices shoot far above what earnings can justify and are held up only by the expectation of further rises.

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