Bubble Theory

Bubble Theory - The bubble theory is based on the theory that security prices will periodically rise way above what their fundamental values may be, until at some time, the bubble that is rising, burst, and the security's price will drop like a rock, quickly. This theory is based upon the inflationary universe theory and was developed as a method to track inflationary independence, which in itself is an extension of the Big Bang Theory. This theory surmises that anything that goes up must come down and that since it is gravity assisted on the way down, it falls quicker than it rises, as a rule.