Posts tagged "stock market bubbles"

The best way to understand what’s happening on Wall Street — and puncture its mystique — is to imagine it as a used-car dealership.

Market bubbles, and their subsequent busts, reflect over-reaction. They have nothing to do with balance sheets and everything to do with human behaviour.

A US tech company has hit the headlines this week following a more than 24,000% jump in the value of its shares in just 16 trading days. Bus…