What does the charging bull on Wall Street signify?
Share prices are going up. And because they are going up, more people are buying shares and so they are going up even higher again. If share prices are going up because people keep buying the stuff that the companies make and the companies are making big profits (or using the extra money to build more factories so they can build even more stuff) then that is a good thing. But eventually people start buying shares purely because the share price is going up and so it turns from a good idea into a pyramid scheme. Very roughly, if profits go up by $30 per share then it makes sense if the share price goes up by $30 per share. But usually what happens is the share price goes up by even more (say $100 per share), which isn’t clever but won’t upset most people if they can offload the shares to a ‘bigger idiot’, say for an extra $101 per share. When all the rich idiots run out of money, the price stops going up, people stop making a quick profit, all sorts of other things happen and the price f
