The Two Best Charts About Financial Bubbles | Exploring Markets

The Two Best Charts About Financial Bubbles

1.) This chart is famously used by registered investment advisors and portfolio managers around the world. It describes financial risk, investor psychology, and the stages of a financial bubble (its rise and fall) in one image:




2.) This next chart comes from Hofstra University professor Jean-Paul Rodrigue. It is one of the most widely cited charts about market bubbles in the world. It focuses on investor psychology and the mindsets that prevail: