Equity and property price bubbles are commonly associated with periods when:

Question

Quizplus · Accepted Answer

Equity and property price bubbles occur when financial asset prices are well above what seems to be a reasonable present value estimate of earnings. This means that the prices of these assets are not based on their actual value but are instead being inflated by market speculation and hype. Financial assets being undervalued or reflecting the book value of companies would not lead to a bubble, and overstated earnings would likely contribute to a market correction rather than a bubble.

Equity and Property Price Bubbles Are Commonly Associated with Periods