Definition, Meaning & Synonyms

speculative-boom

noun

/ˈspɛkjʊlətɪv buːm/

Definition

A period of rapid growth in investment and asset prices, often driven by speculation rather than fundamental economic factors.

Examples

The late 1990s saw a speculative boom in tech stocks, resulting in inflated prices and a subsequent market crash.
During the housing market’s speculative boom, many people invested heavily in properties expecting their values to continue soaring.

Meaning

Speculative boom refers to a phase in the economy where the prices of assets such as stocks, real estate, or commodities rise dramatically due to high levels of investment driven by speculation, with investors betting on future increases in value rather than the inherent value of the assets themselves.