Bubbles (financial manias) unfold in several stages, an observation that is backed up by 500 years of economic history. Each mania is obviously different, but there are always similarities; simplistically, four phases can be identified: Stealth.

2024年11月2日 · Bubbles are deceptive and unpredictable, but understanding the five stages they characteristically go through can help investors prepare for them. The five steps in the lifecycle of a bubble are...

2023年12月21日 · To give some context on the current stock market cycle, this graphic shows 60 years of bull and bear markets, with data from First Trust.

2022年4月3日 · What Is a Bubble? A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick...

2013年11月11日 · We’ve recently seen several excellent charts on investor psychology and the phenomena of market bubbles. Asset bubbles are one of the most interesting aspects of markets. A book written more than 100 years ago on the subject, Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay, remains a bestseller today.

2022年6月14日 · Market bubbles go through four stages on charts. The early stealth phase happens at the beginning of a new market cycle as it goes sideways and forms a price base. The breakout of this range over resistance is the signal of the …

2024年5月29日 · Understanding whether an asset is in a bubble or part of a cycle is important for investment decisions. Bubbles should be avoided due to the risk of widespread permanent loss of capital. On the other hand, cycles are part of normal market behavior and imply the need for patience and humility to achieve long-term returns.

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The Bubble Index chart outlines the lifecycle of a market bubble through 15 distinct stages. These stages are color-coordinated from green, indicating minimal risk, to red, indicating maximum risk, providing a visual cue to the investor’s risk exposure at each phase.

2024年12月5日 · We look to the work of economist Hyman Minsky, who outlined the stages of a financial bubble: displacement, boom, euphoria, profit-taking, and panic. The Tulip Bubble Chart visually represents these stages, from the initial boom fueled by widespread participation to the inevitable panic that led to a crash.