what are asset bubbles and are there specific examples?

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what are asset bubbles and are there specific examples?

2007-01-16 00:23:18 · 1 answers · asked by starchaser18 2 in Business & Finance ➔ Investing

1 answers

Like any other bubble Asset bubble is the price of the asset going up disproportional to their actual growth. This can be due to over exuberance in the economy. Stock Prices are examples. During the Infotech boom days the info stocks were discounted for 25 years where normally it is done only for 8 to 10 years. This blew up the price of underlying securities sky high causing bubble and finally the burst later on.

2007-01-16 04:03:18 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋