Bubble Quote by Robert J. Shiller
“In a bubble, eventually people start saying, 'Wait a minute... these prices are way too high! What is anyone buying anymore? What could they possibly be thinking?' And then there's a correction and a bursting.”
About This Quote
Source Book: Irrational Exuberance, 2000
When prices rise too fast, people question value, leading to a market correction and possible crash.
In simple terms: Overvaluation triggers market crashes.
Key Takeaway
Watch for signs of overvaluation.
Themes
economics
finance
behavioral economics
Mood
cautious
analytical
Type
financial
educational
When to use this quote
- investment
- housing market
- stock market
- consumer pricing
Key Concepts
market cycles
speculation
Questions to Reflect On
- What indicators suggest a bubble is forming?
- How can investors protect themselves?
A Different Perspective
Correction may be delayed, causing larger damage.
![“The Bradford Exchange—a knockoff of [Joseph] Segel’s [Franklin Mint] business—created a murky secondary market for its collector plates, complete with advertisements featuring its “brokers” hovering over computers, tracking plate prices. To underscore the idea of these mass-produced tchotchkes as…” quote by Zac Bissonnette](https://sms4smile.com/quotes/img-quotes/f16/zac-bissonnette-80604_bubble_the-bradford-exchange-a-knockoff-of-jose_143050.jpg)
