Identifying stock market bubbles is vital for protecting investments, especially with the NIFTY50’s market cap-to-GDP ratio at around 93% as of July 2024, signaling potential overvaluation. Key signs include sharply rising P/E ratios, excessive media hype, and increased leverage in trading.
Recognizing these indicators helps avoid significant losses when bubbles burst. Investors should focus on long-term strategies, diversify their portfolios, and stay informed to mitigate risks during bubble conditions.