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.