Glossary · from the DESK dictionary
Bubble
A market phase where prices rise far beyond an asset's fundamental value, usually driven by euphoria rather than fundamentals.
In plain words
When 'this time it's different' becomes the dominant narrative and prices detach completely from economic reality.
Example
Tulip mania, the dot-com bubble, and various crypto cycles are classic examples of speculative bubbles.
What it means for traders
A fundamental concept for understanding extreme, irrational market phases.
Common pitfalls
Bubbles are almost always clearly identifiable only in hindsight — timing the pop is extremely difficult.
Related terms
Asset Bubble · The Dot-Com Bubble (c. 1995-2001) · Herding · Stock Market Crash · Tulip Mania (1636-1637)
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.