Opinion | There’s No Such Thing as a Stock-Market Bubble

Every time the market falls, the pundits come out with the same diagnosis: It was a bubble, speculators lost their minds, and somebody should have stopped them. This time the pundits are early. They decided artificial intelligence is a bubble before anything had fallen. Really? Why would rational investors suddenly lose their minds?

Start with the word itself. What is a bubble? The bubble callers mean a price that hype has pushed above fundamental value. Notice what that assumes: that there is a true price, that the market has lost sight of it, and that when prices come down, reality is correcting a delusion.

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