Speculative Bubble
Categories: Trading
See: Speculation. See: Bubble. See: Tech Bubble.
So what's the diff between a bubble and just a hot market or a high-growth new industry buzz?
Well, a bubble is about ludicrous optimism. Thin, fragile walls. No sense for downside risk. Crazy valuations that make no sense. Weekend football announcers giving advice on stock picks. When that happens, "sell, Mortimer, sell," and run for the hills (with a mattress stuffed with cash).
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Finance: What is speculation?6 Views
Finance a la shmoop what is speculation? wild bets crazy dreams invested upon the [Man placing bet and woman dreaming about money]
state lottery betting the ranch on red
drilling randomly on street corners hoping to find oil you don't want to do
that all right that's speculation the opposite of speculation in a sense is
well just real investing that is doing research on a company or an industry
finding the megatrend it feeds into and doing the math on its earnings and [Man completing math work]
realizing that the company will in fact in two years earn more like five bucks a
share rather than three bucks a share that well everyone on Wall Street ie the
stock brokers are publishing and predicting speculation is just kind of
throwing money at things on a wing and a prayer and you know hoping for that
miracle yeah but doesn't usually happen so just be an investor