Is it Bubble Time on Wall Street?

History is littered with episodes where investors irrationally believed that certain assets would continue to rise in price indefinitely, only to be sorely disappointed and suffer significant losses when the price later crashed. An early example of such an investment “bubble” occurred as far back as the early 1700s, when the stock of the South Sea Company, a British company with a government-approved monopoly, increased in value almost tenfold in a single year. Continue reading