Here you can find the reason that why the market bubble is dangerous. The IntelliBubble feature of the app will keep you informed about the market bubbles and when it is more likely to rise and bursts.
2. The market bubbles are more dangerous because it can occur due
to herd behavior and naïve predictions. There used to be no real
Share market technical analysis made to asset price surge.
This is just a pattern followed by all, which increase the share price
more than its actual valuation and when the bubble bursts, it
results in loss of money.
3. The market bubble can be influential and created by the sellers to
increase its stock price. This is the most dangerous characteristic
of the market bubble and the stock market history witnessed a
few major market bubbles that had occurred in the past due to
influential and artificial hype created by the stock market gurus or
the major stockholders.
4. One of the most dangerous reasons to be scared of the stock
market bubbles are government and its policies that can be
enforced anytime to control the economy. The government holds
the power of intervening in the stock market by introducing subsidy,
tax and other compliance to control the inflammation and overall
economy. This type of government interference can be the cause of
market bubble burst that can result in loss of valuation of the
shares.