Behavioral Finance
Euphoria refers to a state of intense excitement and happiness that can lead to overly optimistic behavior, especially in financial markets. This emotional high can distort rational decision-making, resulting in risky investments and inflated asset prices as investors succumb to the allure of potential profits. Euphoria often occurs during bull markets, where the expectation of continued growth can drive a cycle of increased buying and enthusiasm, further exacerbating market dynamics.
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