Bubbles

82FootballWaxMemorys

Courtesy https://www.investopedia.com/articles/stocks/10/5-steps-of-a-bubble.asp

Bubble, in an economic context, generally refers to a situation where the price for something—an individual stock, a financial asset, or even an entire sector, market, or asset class—exceeds its fundamental value by a large margin.

Financial bubbles, aka asset bubbles or economic bubbles, fit into four basic categories: stock market bubbles, market bubbles, credit bubbles, and commodity bubbles.

• Bubbles are deceptive and unpredictable, but understanding the five stages they characteristically go through can help investors prepare for them.

• The five steps in the life cycle of a bubble are displacement, boom, euphoria, profit-taking, and panic.

• The damage caused by the bursting of a bubble depends on the economic sector(s) involved, whether the extent of participation is widespread or localized, and to what extent debt fueled the investments that inflated the bubble.

Some may believe this may somehow not apply to collectibles, but in effect they are a commodity. Of course debt is probably not the same factor with cards as other financial investments but I do wonder how many folks have maxed out their credit cards buying Junk Wax era PSA10's Sooner or later the piper will get paid,

The question at the moment is, which phase are cards currently in; Boom? Euphoria? Or have entered "Profit Taking"? My opinion is they are on backside of Euphoria...

rcmb3220

I hope it bursts soon. Paying $45 for a 1983 Topps pack is no fun.

blurryface

"just be nice, blurry. just be nice"

billwaltonsbeard