Practical Steps to Financial Independence’ and finance and business coach, Mr. Five players to avoid trading forex see a solid and attractive round object, you reach for it and by the time you get your hands round it, the bubble bursts.
There is nothing inside, a hollow filled with air. You were deceived by its outward appearance. A new investment comes to town. It is easy to enter and the returns are better than what the market is offering.
You buy low and before you say jack, the price doubles and triples. Financial bubbles manifest when the price of an asset trades in a range far above its intrinsic value. You are paying for more than it is actually worth. In some instances, by the time the bubble bursts, you may not even find someone to sell it to.
It becomes a worthless piece of paper. In a financial bubble, the investment becomes the rave of the moment and everyone seems to want a piece of the action. Planwell, Umanah Umanah, Forum, Nospetco, MMM, among others. There was a stock market bubble between 2005 and 2008 and real estate bubble around 2010. Why do people keep falling into the same trap? Some even attack those that try to warn them.