Most everyone remembers the run up of the price of tech stocks about ten years ago. It was commonly referred to as the dot-com bubble. The technology-laden NASDAQ composite index went from roughly 800 to 5000 in six years, only to have it come tumbling down. In reality, the value was just not there.
More recently we’ve had the housing bubble when home prices were going up 20 to 30 percent a year. In some cases the price of a house doubled in less than 4 years, only to have the bubble break and prices dramatically fall. What went up …Read More