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During the 1920s, several factors contributed to the soaring stock prices and the formation of a bull market. The post-World War I economic expansion led to increased consumer spending and industrial growth, while innovations in technology and mass production boosted corporate profits. Additionally, easy access to credit and speculative investing encouraged individuals to buy stocks, often on margin, which further inflated prices. This combination of optimism, economic growth, and speculative behavior ultimately created an unsustainable market bubble that would lead to the crash in 1929.

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