Bubble

• Bubbles are easy to see when looking at a time series price chart
• It's difficult to tell when exactly bubbles will pop - they can always go higher
• Bubbles tend to deflate far faster than they inflate
• Bubbles deflate very sharp and fast
• Think 20-50% in matter of months!
• Bubbles follow a typical pattern
• They first rise gradually for an extended time period
• They then rise at a faster pace with a steep rally (bend in graph)
• They then being to rise exponentially (almost vertical
• Then they pop and fall fast (vertically)

Some World's Greatest Bubbles

• Steam Engines
• US Canals (1700s)
• US Midwestern Real Estate (1800s)
• Railroad boom  (peak in 1920s)
• Automobiles (1929)
• Bitcoin (2017)