Economic bubbles, or “speculative bubbles,” occur when investors pay sky-high prices for over-hyped assets. Eventually the bubble bursts and triggers a crash, a recession, or even an economic depression. But how do you know if you’re in an economic bubble? Are we in a bubble today?
Historically, there have been three major speculative bubbles - Tulip Mania in the 1600s, the bull market of the Roaring Twenties (followed by the Great Depression), and the dot-com bubble of the 1980s.
Find out what these bubbles have in common, and learn these tips to help bubble-proof your investments.
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