Question

Why might it be better to ride the bubble than fighting it?

Why might it be better to ride the bubble than fighting it?

Homework Answers

Answer #1

Riding the bubble with bring in profits. Hence it is beneficial to rise it rather than fight it.For instance if we know that the stock prices are at an all time high and are nothing but a bubble.This means that the companies do not actually have the intrinsic value that has been quoted as their share price. Instead of waiting for the prices to come down to that level, investors can make quick short term gains by riding the bubble rather than think about long term investment in the company.

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