Infographic of the Day: Is the Next Bubble About to Burst?

April 23rd, 2014
in News, econ_news, syndication

Economics is all about learning from previous market movements, and trying to predict the next big move.

Follow up:

Let’s look at the historic pattern of bubbles.

Bubble:
over-demand on a stock drive prices beyond actual worth based on performance of the underlying company.

Crash: Significant drop in the value of a market where a majority of investors are trying to flee the market.

The process results in panic selling, stocks losing value and investors losing money which curtails future investment.

This can lead to economic depression.

Stages of Bubbles:

1.) Stealth phase – “smart money” enters.
2.) Awareness phase – Institutions begin to invest.
3.) Mania Phase–Media broadcasts to general public who invest. Speculation rises, prices soar.
4.) Prices collapse.

(click here for larger image)

The Next Bubble
Source: BizBrain.org

 









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved