Why It's Always so Crazy: the Formation, Collapse, and Response of Stock Market Bubbles

Behind every surge and collapse in the stock market, there is a bubble forming, fermenting, and collapsing. Bubbles can occur at any time and in any country and, like fire, have the destructive power to destroy everything. It once made the Netherlands empty out of ten houses, once brought France to the point of riot, once brought the United States into economic depression, and once plunged Japan into the "lost decade". Therefore, whether it is investors, companies or the public sector, it is crucial to understand and prevent bubbles. Especially at the critical moment of my country's economic transformation, effectively dealing with bubbles will benefit investors and even society as a whole. Financial expert Han Heyuan, through precise analysis of typical bubble events in history, successfully unearthed the causes of bubble formation and collapse, constructed a bubble formation and collapse model, and proposed corresponding countermeasures. The author believes that whether a bubble forms or collapses, the madness of human nature is indispensable, and sometimes the government is also active. In the case where we cannot interfere with government actions and financial policies, we must always remain rational in order to survive alone. If we want to dance with the bubble, we must also grasp the stage of the bubble and choose the opportunity to advance or retreat in order to protect our wealth.