Forget the ‘bubble’ narrative; when stock prices tumble, it’s not a collective delusion unwinding, but rather the market resolving inherent uncertainty. This phenomenon, observed as keenly in 1999 as it is today, highlights that market downturns are less about irrational exuberance collapsing and more about investors recalibrating their expectations as previously ambiguous factors become clearer, leading to a more grounded valuation of assets.
Adapted from: WSJ.com: Markets
