Price increases fueled more buying from "summary" of The Great Crash 1929 by John Kenneth Galbraith
Price increases had a peculiar effect on the minds of the public. As stock prices went up, there was a general feeling that they would continue to go up. This feeling was not confined to the professional speculator. It spread to people who had never invested in the stock market before. The rise in prices was itself an indication of the desirability of owning stocks. People were drawn to the market by the prospect of easy and quick profits. The more prices rose, the more people were inclined to buy. It became a self-reinforcing cycle. The buying itself pushed prices higher, which then encouraged more buying. People were caugh...
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