Stock market - Bubble popped !

For every bubble there is a pin waiting, and for the stock market bubble of the last 2 years, the rising interest rates is that pin. The extraordinary amount of both fiscal and monetary stimulus facilitated an unprecedented level of risk-taking in the financial markets, resulting in lofty and unsustainable valuations.

Euphoric markets lead to very irrational speculation. FOMO and YOLO are two of the acronyms that were popular last year when the markets were rising rapidly. Normalcy is finally setting in after some 2 years of irrational exuberance, but some high degree of speculation in certain asset classes still exists. The longer that financial markets tread one way without any meaningful correction, the harder they eventually fall.