> instead of prices coming crashing down, prices stay stagnant or grow slowly, while earnings grow quickly
Do you have a link where I could read more about this? As a layman I fail to understand how this would work, and I couldn't find a page explaining it.
My naive understanding is that a bubble pops when investors lose confidence in the market, and instead of anticipating growth, anticipates a correction and create a feedback loop down to a certain level (at which some counter feedback stabilizes the movement).
How can earnings increase when investors have lost confidence?
Do you have a link where I could read more about this? As a layman I fail to understand how this would work, and I couldn't find a page explaining it.
My naive understanding is that a bubble pops when investors lose confidence in the market, and instead of anticipating growth, anticipates a correction and create a feedback loop down to a certain level (at which some counter feedback stabilizes the movement).
How can earnings increase when investors have lost confidence?