In just seven days, $1 trillion vanished from the value of seven of the big U.S. growth stocks. One trillion dollars. Investors unexpectedly getting a lot poorer has had nasty repercussions in the past. What can we expect if this year’s wild excess around disruptive technology stocks continues to deflate? In extreme cases, bursting bubbles sometimes trash the entire economy, as with Britain’s 1846 Railway Mania, Japan’s 1989 property-and-equity bubble or the pre-2007 housing-and-structured-debt bubble.

Source: Wall Street Journal September 13, 2020 13:03 UTC