An investment bubble occurs when the prices of assets, such as stocks or real estate, rise rapidly to levels that are not supported by their fundamental value. This surge is often driven by excessive speculation, where investors buy assets with the hope that prices will continue to climb. Eventually, the bubble bursts when prices fall sharply, leading to significant financial losses for those who bought at inflated prices. Bubbles can be influenced by various factors, including market sentiment, media hype, and easy credit. Historical examples include the Dot-com Bubble of the late 1990s and the Housing Bubble leading up to the 2008 financial crisis. Understanding these dynamics can help investors make more informed decisions.