Bubble

Bubbles are market conditions in which prices are greatly in excess of 'fundamental' valuations.

The bubble is likely to burst at some future point, with a rapid fall in market prices.

See also

• Adaptive expectations
• Correction
• Crash
• Dislocation
• Efficient market hypothesis
• Fundamental analysis
• Mean reversion
• Overshooting
• Random walk
• Rational expectations
• Systemic risk
• Trend