speculative bubble

Definition of "speculative bubble"
  1. 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
How to use "speculative bubble" in a sentence
  1. The housing market crash was blamed on a speculative bubble created by unchecked lending practices.
  2. When investors realized the company's value was inflated, the speculative bubble burst causing a rapid drop in stock prices.
  3. During the tech boom of the 1990s, many investors were caught up in a speculative bubble.

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