Lately, some financial market experts have used the phrase “top off” to describe the price behavior of certain assets. While operating tops are not an everyday fact, they can have an impact on investors as they can produce huge gains or devastating losses.
Which are? Top games may be, but not always, the last stage of an asset bubble. Many market rallies begin with the asset price trend at approximately the same rate. But if its growth rate accelerates enough, that growth will end dramatically with a rise. “While nothing is 100% absolute, most stock markets and bubbles end in a cathartic endpoint,” says Shawn Hackett, president of Hackett Financial Advisors Inc.