The "greater fool" theory assumes that

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The greater fool theory states that it is okay to buy an asset even if it is overpriced, as long as there is someone else who will buy it later for a higher price. This theory assumes that there will always be a "greater fool" willing to buy the asset at a higher price, leading to a price increase. This theory contradicts the idea of efficient markets and acknowledges the presence of market bubbles. The theory applies to all types of assets, including both stock and bond markets.

The "Greater Fool" Theory Assumes That