Speculation can lead to market bubbles from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
When investors start speculating, they are essentially making bets on the future. They are not investing based on the actual value of an asset, but rather on the expectation that its price will increase. This kind of mindset can lead to market bubbles because it creates an artificial demand for the asset in question. As more and more investors pile in, the price of the asset is driven up beyond its intrinsic value.
This inflated price becomes unsustainable because it is not supported by any real economic fundamentals. Eventually, the bubble bursts, and the price of the asset comes crashing down. This can lead to substantial losses for investors who bought in at the peak of the bubble. The aftermath of a burst bubble can be devastating, not just for individual investors, but for the wider economy as well.
Marke...
Read More
Continue reading the Microbook on the Oter App. You can also listen to the highlights by choosing micro or macro audio option on the app. Download now to keep learning!
Now you can listen to your microbooks on-the-go. Download the Oter App on your mobile device and continue making progress towards your goals, no matter where you are.
