Irrational Exuberance


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Irrational Exuberance

A term used by Alan Greenspan in 1996 to describe the dot-com bubble and, more broadly, the fact that the markets were overvalued. He was criticized at the time for talking down the market and stocks fell worldwide after he said it. However, his opinion was vindicated when the dot-com bubble burst, and irrational exuberance is still used as a catch phrase for overvalued markets.
References in periodicals archive ?
However, it's too early to worry, for a new normal will emerge when the markets mature to strike a balance between irrational exuberance and a more grounded, common sense approach.
Unfortunately, even professional investors sometimes accept artificial valuations as the new truth and get swept away by Irrational Exuberance, when what they should be doing is analyzing whether these valuations are based on real economic considerations or other interests that they should be discouraging.
Billionaire investor Sam Zell said on CNBCs "Squawk Box" Tuesday morning, "I think the current situation seems like irrational exuberance.
Summary: Bitcoin rally is driven by irrational exuberance
The first is a natural tendency towards occasional bouts of irrational exuberance for instance in response to promising scientific discoveries or technological advances that lead investors to radically upgrade their future income expectations.
He is the author of Irrational Exuberance, the third edition of which was published in January 2015, and, most recently, Phishing for Phools: The Economics of Manipulation and Deception, co-authored with George Akerlof.
Irrational exuberance led to a large increase in investment in housing and in drilling for oil and gas.
It's more important, just as it was during the crash to $30 a barrel five years ago, to recognise the slump is irrational exuberance and prices will recover"
However we would strongly caution both analysts and investors against any irrational exuberance in what continues to be a difficult economic environment, with some company-specific challenges in H2," he added.
I wouldn't call it irrational exuberance but clearly everybody in Asia is ordering aircraft more than they really need," Grabowski told Reuters in an interview.
But economists typically see shorters' role as essential in financial markets because they introduce often-needed skepticism about a stock's price--that is, they counteract irrational exuberance.
If at 7,400 (the peak of the last bull run) there was irrational exuberance, yesterday was just plain irrational," said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.