Why Stock Market Bubble Is Dangerous

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The market bubbles are more dangerous because it
can occur due to herd behavior and naïve
predictions. There used to be no real Share
market technical analysis made to asset price
surge. This is just a pattern followed by all,
which increase the share price more than its
actual valuation and when the bubble bursts, it
results in loss of money.
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The market bubble can be influential and created
by the sellers to increase its stock price. This
is the most dangerous characteristic of the
market bubble and the stock market history
witnessed a few major market bubbles that had
occurred in the past due to influential and
artificial hype created by the stock market gurus
or the major stockholders.
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One of the most dangerous reasons to be scared of
the stock market bubbles are government and its
policies that can be enforced anytime to control
the economy. The government holds the power of
intervening in the stock market by introducing
subsidy, tax and other compliance to control the
inflammation and overall economy. This type of
government interference can be the cause of
market bubble burst that can result in loss of
valuation of the shares.
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