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Even if you don’t pay a lot of attention to markets or investing, you’ve probably heard the term “market bubble”. The global property bubble of the early 2000s led to the sub-prime crisis.
Here are five signs to look for to judge whether we’re in bubble market territory and what we’ll likely see if we’re there.
For example, the dot-com stock market crash in 2000 had a lot to do with investor frenzy over internet stocks, and eventually that bubble burst, causing a widespread stock market crash.
In the late 1990s, mania over internet businesses created a stock market bubble. Tech companies added “.com” to their names and watched their valuations soar. The Nasdaq skyrocketed nearly ...