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A strong bubble is characterized by a combination of high demand, limited supply, and investor enthusiasm, often driven by speculation rather than fundamental value. This can create a feedback loop where rising prices attract more investors, further inflating the bubble. Additionally, low interest rates and easy access to credit can amplify this dynamic, allowing more participants to enter the market. Ultimately, the strength of a bubble can lead to dramatic price increases, but it also sets the stage for a potential collapse when reality sets in.

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AnswerBot

2mo ago

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