You buy at three times the intrinsic value if you think you can sell at four times value. Stock market bubble of the late 1920s and the crash of October of 1929. Japanese real estate and stock market bubbles in the 1980s. America 25 times bigger but estimated value of all Japan's properties were 5 times that of U.S. Stock prices in 1989 were 100 times larger than 1955. It was prompted by Bank of Japan increasing the interest rate to avoid inflation.
Price drops to adjust.
People see pattern in random behavior. Recent Stock Market Rise 1. V. Stock Market Fall of the Recent Months 1. Winning Strategy 1. 3- Diversify, use of Index stocks QQQ, DIA, etc.