Market Phenomena
Market phenomena refer to observable patterns and behaviors in financial markets that can influence asset prices and trading volumes. These phenomena can include trends, bubbles, and crashes, often driven by factors such as investor sentiment, economic indicators, and external events. Understanding these patterns helps traders and analysts make informed decisions.
Examples of market phenomena include the dot-com bubble of the late 1990s, where technology stocks soared to unsustainable levels, and the 2008 financial crisis, which was marked by a significant decline in housing prices and widespread economic turmoil. Recognizing these events can provide insights into future market behavior.