4) When irrational exuberance comes to an end, it is replaced by irrational depression. Prices do not remain at moderate levels in the wake of a time when they were at very high levels.

Irrational Market Exuberance Is Dying a Painful Death—Again “A dose of realism” has shaken up equities, Moneta Chief Investment Officer Aoifinn Devitt says. Source: Moment/Getty Images ...

Irrational Exuberance was a good title for Robert Shiller’s book “revolutionizing” (that word appears in the subtitle) our understanding of how the stock market works.