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What Is a Stock Market Bubble?

By Jeremy Bowman – Updated Jul 5, 2025 at 5:12PM

Key Points

  • Stock market bubbles occur when asset prices inflate without solid business fundamentals.
  • Speculative buying and euphoria among investors are typical drivers of such bubbles.
  • Identifying and avoiding overvalued stocks is crucial in protecting investment portfolios.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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