Displacement: A new technology, financial innovation, or major event captures investors' attention. Boom: Prices start rising as more investors enter the market, often fueled by media coverage and word of mouth. Euphoria: Overconfidence and speculation drive prices far beyond intrinsic values. Investors often use leverage to maximize gains. Profit-taking: Savvy investors start selling off their assets, sensing that the market is overheated. Panic: A sharp drop in prices occurs as the bubble bursts, leading to widespread selling and financial losses.