What is “boom”
Boom refers to the period of increased commercial activity or business, market, industry or the economy as a whole. For individual companies, the boom means quick and significant increase of sales, while boom in the country has recorded significant GDP growth. In the stock market, the rise is associated with bull markets, while crises bear market.
Booms are often medium and long – term periods of economic or market growth, and ultimately can turn into a bubble. A bubble is when the boom extends far beyond the fundamental growth trends of cost where customers become excessive enthusiasm’. Some examples of the arrows that eventually turned into asset bubbles was a bull stock market in the mid 1990-ies, which have become a technological breakthrough, which popped in 2001. Another example is the boom in housing prices in the early 2000s, which turned into the real estate bubble of 2008-09. From 2010 until mid-2018, the global equity markets are experiencing a long term boom.
Breaking down the “boom”
Stocks that have suddenly become popular and gain strong elevated market profits are the result of the stock boom. An example of this is the booming Internet technologies and “dot-com bubble” that happened in the late 90-ies. It was one of the most famous climbs in the history of the stock market.
Of the company or the results of the industry boom in the increase of production, jobs and investment in this sector. Some events may be citywide or nationwide arrows for entrepreneurial activities such as the Olympics, which is resulting in investment capital, television deals, sponsorship deals and tourism. One company, TV broadcasting will reach 4.1 billion dollars at the summer Olympic games in 2016 in Brazil.
Conversely, a decline in a particular industry or the financial sector can lead to a bust for the whole city or state, especially if the region is investing too much in this industry or sector. Currently, Arizona and Nevada are mired in an economic downturn, because they were hit hardest by the real estate bust and the mortgage crisis of 2007.
The cyclical nature of the market and the economy in General suggests that every strong economic growth bull market in history gave way to sluggish low the bear market growth.
If the arrow goes beyond its reasonable life, or if prices go far above the initial boom of a trend, a bubble can be formed, which has the potential to pop and thus turn arrows in the subsequent bust. Several such cases have occurred worldwide throughout history, from the Dutch tulipmania of the 17th century before the great recession of 2008.
The trend UPS and downs in the United States
At a more aggregated level, the boom is indicated by increased production and income, employment, prices, profits and interest rates. Economic observers are scratching their aggregate data on US States in order to see the amount each state contributes to variables such as real GDP per capita and growth in real GDP per capita.
The U.S., which experienced the highest growth in real GDP per capita from 2000 to 2015 North Dakota, South Dakota, Oregon, Oklahoma, Nebraska, Montana, Iowa, new York, Vermont and Texas. USA with the lowest rate of growth of real GDP per capita over this same time period, Nevada, Georgia, Arizona, Delaware, South Carolina, Michigan, Idaho, Florida, Missouri and North Carolina. The first set of States are considered to be maintaining long-term boom, while the second group of States considered to be suffering long-term bust.