Inside the Strategy Room cover image

257. The new and timeless truths of valuation

Inside the Strategy Room

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Understanding Stock Market Bubbles and Their Implications

This chapter explores stock market bubbles and their deviation from rationality and efficiency, with a focus on historical examples like the Nifty 50 and dot-com bubble. It highlights the role of retail investor behavior in driving bubbles and the widespread disillusionment that follows when valuations crash.

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