New study reveals U.S. stock market bubbles, impacting investors worldwide.
Speculative bubbles in the U.S. stock market are when stock prices are higher than their actual value. This study looks at different tests for spotting these bubbles and introduces a new method. They applied this new test to U.S. stock market data from the past century and found evidence of stock price bubbles. In the post-war period, there were positive bubbles, but in the annual data, there were some instances of negative bubbles.