speculative bubble
- A sudden drastic increase in asset prices fueled by investors excessively buying because they expect to sell at even higher prices, not due to any fundamental factors affecting supply and demand
- The housing market crash was blamed on a speculative bubble created by unchecked lending practices.
- When investors realized the company's value was inflated, the speculative bubble burst causing a rapid drop in stock prices.
- During the tech boom of the 1990s, many investors were caught up in a speculative bubble.
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