22 lines
750 B
Markdown
22 lines
750 B
Markdown
# Bubble
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An economic bubble is a phenomenon in markets created by herd mentality, whereby people hear stories of others who bought in early and made big profits, causing those who did not buy to feel a fear of missing out. This causes irrational pricing of the asset which proceeds until the mania subsides.
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Attempting to time the market on bubbles is a [zero-sum-game](zero-sum-game.md) and has a negative [expected-return](expected-return.md).
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## Examples
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* South Sea Bubble
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* Beanie Baby Bubble
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* London Rail Bubble
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* Tulip Mania
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* Dot-com Bubble
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* Japanese Real Estate Bubble
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* [Cryptoasset](cryptoasset.md) Bubble
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## References
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* [@mackay_extraordinary_2012]
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* [@bernstein_delusions_2021]
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* [@blanchard_bubbles_1982]
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* [@fry_negative_2016] |