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irrational exuberance

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Financial Dictionary

Irrational Exuberance

An infamous phrase uttered by Alan Greenspan in 1996 to describe the overvalued market at the time.

Investopedia Commentary

Although every word spoken by Mr.Greenspan, chairman of the Federal Reserve Board, is scrutinized, this phrase was even more so examined as market analysts tried to uncover any and all possible results. The phrase even became the title of a New York Times best selling book by Robert Schiller.

Related Links

How Investors Often Cause The Market's Problems
The Madness Of Crowds
The Greatest Market Crashes

See also: Alan Greenspan, Federal Reserve Board, Fully Valued, Greater Fool Theory, Herd Instinct, Overbought, Overvalued, Sell-Off, Speculative Bubble, Valuation

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