As the U.S. economy shows signs of a robust recovery, investors and economists are increasingly warning of a potential bubble in financial markets. Fueled by low interest rates, government stimulus, and a surge in retail trading, the current market euphoria has sparked concerns that asset prices have decoupled from economic fundamentals.
The Context of Market Euphoria
The current landscape is defined by an unprecedented influx of liquidity into the financial system. Following the global pandemic, the Federal Reserve maintained near-zero interest rates, effectively incentivizing risk-taking among institutional and individual investors alike.
This environment birthed a frenzy for speculative assets, most notably Special Purpose Acquisition Companies (SPACs). These
