 Irrational exuberance

"Irrational exuberance" is a term popularized by former Federal Reserve Chairman Alan Greenspan in a speech in 1996. It refers to the phenomenon where investors behave in an overly optimistic manner, leading to asset prices rising to levels that are not justified by fundamentals, such as earnings or economic indicators. This excessive optimism can create asset bubbles, where prices become inflated beyond their intrinsic value, often leading to significant market corrections or crashes when the bubble bursts.