Have investors learned nothing from the late 90s?
Since price determination is really the outcome of speculation. Does the price of the moment really define the intrinsic price of company...as only a few shares are traded vs outstanding. I say no. The price of the moment really reflects opinion of a small number of traders for the expected future price..as one is selling, one is buying...both of these opinions are generally opposite of each other. Anyway, since pricing is speculative at the moment, it seems that bubbles can periodically appear (especially short term) and just as quickly disappear. However, some continue longer term, and then other market features(such as options,short selling,etc) may leverage the bubble to grow larger.