Are We In A Stock Market Bubble?
2017 has been an exceptional year for stock markets across the world. The start of 2018 has been no different at all. This has got many people wondering whether we are in a manic phase. There is no reason why this possibility should be ruled out. The Dow Jones Index has seen an uptick in every month of the previous year. There has been no discernable reason for the index to rise so fast. This has got many investors wondering whether they are in a melt-up phase. A melt up phase is the run-up to a crash. Here asset prices increase at an alarming rate driven by nothing but positive sentiment. This situation aptly describes what is happening to equities all over the globe.
There are many analysts who do believe that we are in a bubble. On the other hand, many do believe that this isnt a bubble. In this article, we will have a closer look at both sides of the argument.
Why Does It Seem Like A Bubble?
Why It Doesnt Seem Like A Bubble
Crashes can only be predicted in hindsight. This is because, before the crash, there are always different arguments that try to convince people that this time it is different. All major investors have warned that the Bull Run might be over and bears might take over in the next 12 to 18 months phase.
Authorship/Referencing - About the Author(s)
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