the asset pricing phenomena called "bubbles" by
attempting to see how the following contemporary occurrences can be related
to more current examples. The first is occurrence was a speculative bubble
known as the Tulip-Bulb craze. From there the report ties in other historic
bubbles to the topic at hand. The second occurrence addresses the ability
of a stock market to return to what would be considered pre-crash levels
after a major sell-off. The third occurrence relates to a very important
question - Have stock's price growth exceeded earnings growth over the past
decade' The fourth occurrence relates to the efficient markets hypothesis
and that tie into the stock prize speculative bubble phenomena. This
occurrence also covers the internet bubble burst and its effects on our
All throughout history numerous investors have been caught off with
their pants down, to say the least, by the bursting of one speculative
bubble after another. Speculative bubbles are an investing phenomenon that
can be like a pride of lions getting the smell of blood when an antelope
has been downed. It can be said that these bubbles are usually caused by
greed and others feel that they simply a lack of common sense or some type
of flaw in us humans. Whatever the case, investors consistently repeat the
mistakes associated with speculative bubbles. "A bubble occurs when
investors put so much demand on a stock that they drive the price beyond
any accurate or rational reflection of its actual worth, which should be
determined by the performance of the underlying company." (Greatest Market
Like a circus performing clown who blows up balloons, if he blows to
hard then eventually those balloons cannot hold any additional helium air -
they BURST.' Investors should of course be required to learn the positive
and negative accounts of financial history. This would help them to avoid
making the same stupid mis...