#firstdealofthenewyearastylz A financial market bubble occurs when asset prices rise far above their intrinsic value due to speculation and investor euphoria. When sentiment shifts, the bubble bursts, leading to a market crash—a rapid price decline. Phases of a Bubble: 1. Stealth Phase – Early investors buy in. 2. Awareness Phase – Institutions and media drive interest. 3. Mania Phase – Retail investors push prices to extremes. 4. Blow-off Phase – Panic selling causes a crash. Examples: Tulip Mania (1637) – Overpriced tulips led to a collapse. Dot-com Bubble (2000) – Internet stocks crashed after hype faded. 2008 Financial Crisis – Housing market collapse triggered a global recession. Bubbles repeat due to greed, speculation, and market psychology.