Stock prices reached unsustainable highs from "summary" of The Great Crash 1929 by John Kenneth Galbraith
The most extraordinary thing about the stock market in the years leading up to the great crash of 1929 was the relentless rise in stock prices. Investors seemed convinced that the upward trajectory would continue indefinitely, leading to exorbitant valuations that defied logic and reason. As prices soared to unprecedented levels, many observers began to question the sustainability of such lofty highs. While some saw the soaring prices as a sign of economic prosperity and limitless growth, others sounded the alarm about the dangers of speculative excess. It became increasingly clear that the market had become detached from underlying economic fundamentals, driven instead by irrational exuberance and unfounded optimism. This disconnect between prices and reality set the stage for a dramatic and devastating collapse. As stock prices reached ever greater heights, more and more investors were drawn into the frenzy, lured by the promise of quick and easy profits. The fear of missing out on the action led many to aband...
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