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Asset bubble
01
a situation in which the prices of assets, such as stocks, real estate, or commodities, become significantly inflated beyond their intrinsic value due to speculative investing or market hype
Example
During the dot-com boom of the late 1990s, many technology stocks experienced an asset bubble.
The housing market in several countries experienced an asset bubble in the mid-2000s, leading to a widespread housing crisis.
Economic analysts warn that the current surge in commodity prices could be indicative of an asset bubble forming in global markets.
Investors scrambled to sell their holdings before the asset bubble burst, fearing significant losses in their portfolios.
