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Not OP, but it makes sense. A lot of investors hear about an asset going up and they want to join the party. A lot of the other investors try to predict where t
by thefj 7y ago
Not OP, but it makes sense. A lot of investors hear about an asset going up and they want to join the party. A lot of the other investors try to predict where the emotional investors will go and buy the asset in anticipation.
- sweeneyrod 7y agoYes, that certainly can happen. But when that kind of speculation has a significant effect it's called a bubble, and is an exception to the usual rule that increased demand causes prices to increase up to a new equilibrium point and no further. Is there any reason to think that a bubble would occur in this particular situation?