If you’ve been an investor for a few decades, you’re probably familiar with the great Internet bubble that burst in early 2000, severely shrinking many portfolios. (The S&P 500 fell by 9.1% that year, followed by drops of 11.9% and 22.1%, respectively, in the next years.) That was followed by a housing bubble that began bursting in 2006, contributing to a 37% drop in the S&P 500 in 2008.
Financial bubbles bursting aren’t anything new, as readers of financial history know. There was a very famous tulip bubble, of all things, in Holland in the 1600s. Few, though, know about the also-impressive bicycle bubble in Britain in the 1800s. It’s one of many bubbles detailed in the new book Boom and Bust: A Global History of Financial Bubbles by William Quinn and John D. Turner.
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Here’s a look at some aspects of the bicycle bubble, along