Irrational exuberance is unfounded economic optimism spurred by emotions like hope and greed and not linked to fundamental valuations.
 | | Term of the Day | Words to Know | | |  | | Irrational Exuberance | | Irrational exuberance refers to investor enthusiasm that drives asset prices higher than those assets' fundamentals justify. The term was popularized by former Fed chairman Alan Greenspan in a 1996 speech, "The Challenge of Central Banking in a Democratic Society," which he gave around the beginning of the dot-com bubble. | | Read More » | | Related to "Irrational Exuberance" | | | | Positive Feedback | | Positive feedback, or a positive feedback loop, is a self-perpetuating pattern of investment behavior where the end result reinforces the initial act. | | Read More » | | | Dotcom | | A dotcom, or dot-com, is a company that embraces the Internet as the key component in its business. | | Read More » | | | Bubble | | A bubble is an economic cycle characterized by rapid rise in asset prices followed by fall. | | Read More » | | | Panic Selling | | Panic selling refers to the sudden, wide-scale selling of a security or securities by a large number of investors, causing a sharp decline in price. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
/GettyImages-184064999-5bcf59682a854718a39f9a7430268add.jpg)
/fearandgreed-53485d57418f47fcb6211ae5f6a39862.jpg)
/10_books_every_investor_should_read-5bfc396746e0fb00517fb75b.jpg)
No comments:
Post a Comment