Despite the fact that financial bubbles also known as speculative bubbles are not rare, people repeatedly fail to recognize speculative trading as it's happening. Too often, those involved only identify these risky activities after they happened. Once the bubble explodes, it's already too late. One of the crucial reasons for this is that bubbles are often driven by strong emotions, stopping people's ability to make rational decisions. When traders who are willing to take huge risks start operating in that environment, you have a recipe for disaster. Bubbles can be very damaging, especially for those who arrived late hoping to get something for nothing. Even if they are inflationary events, the outcome of a bubble's blow-off is very deflationary as large quantities of capital disappear in the way of bankruptcies and financial defaults they trigger. The term "bubble," in an economic context, refers to a situation where the price for something like an individual stock, a financial asset, or even an entire sector, market, or asset class, is bigger than its intrinsic value by a large margin. Because speculative demand, rather than intrinsic worth, is the reason for the inflated prices, the bubble eventually but inevitably pops, and massive sell-offs caused prices to decline, often quite dramatically. In most cases, a speculative bubble is followed by a big crash. The effects of the bubble are usually only observed after it happened, and so it was also the case for the first known economic bubble. The Tulip mania led to a rise in prices for tulips and a surge in speculations, which then led to a giant crash the year after. 00:00 - Intro 01:13 - What an economic bubble is? 02:32 - 4 Types of economic bubbles. 04:06 - 5 Stages of economic bubbles. 08:19 - What causes asset bubbles? 08:51 - What happens when an asset bubble pops? 10:01 - How to recognize an economic bubble? 10:49 - How to invest during a Stock Market bubble? 11:55 - Conclusion 🔴 Subscribe for more content:https://www.youtube.com/channel/UCnlrV5zxXGGbW0mHw1Rk9KA?sub_confirmation=1 🎬Watch my most recent videos: https://www.youtube.com/watch?v=gtIt-_BjzqU ► Get 3 FREE stocks valued up to $3000 (when you deposit $100): https://a.webull.com/ga69EV6nBx9ic9EXkY ► $10 of Bitcoin from Coinbase: https://coinbase.com/join/sandor_91?src=ios-link ► Binance: https://accounts.binance.com/en/register?ref=215869590 ► Etoro: https://etoro.tw/3gpNnw6 ► ROBINHOOD (Get 1 Stock When You Sign Up): https://join.robinhood.com/gheorgs-f7f0a4 ► Sign up for Crypto.com and we both get $25 USD: https://crypto.com/app/g8qn6mqayh ► How I Protect My Bitcoin, using my referral code 16642121fb or the referral link:https://celsiusnetwork.app.link/16642121fbwhen signing up and earn $50 in BTC with your first transfer of $400 or more! ► Get up to $250 in Digital Currency: https://blockfi.com/?ref=a9560869 ► $25 of Bitcoin when you buy $100: https://gemini.com/share/wagdv5v2e ► Bitfinex: https://bitfinex.com/?refcode=4Vk2YYTOM ► Join me and over 15 million users who love Revolut. Sign up with my link below: https://revolut.com/referral/gheorgbljm!JAN1-22-AR ►Join Nexo and get $25 in BTC! With Nexo, you can earn up to 20% APR on crypto and stablecoins, borrow against or exchange cryptocurrencies, and much more. Sign up here: https://nexo.io/ref/idxkgted5m?src=ios-link 🎬Watch more content about the Economy: https://www.youtube.com/watch?v=xwGZlxfjPW4