Have you ever seen asset prices skyrocket wildly and then drop like a balloon bursting? That’s what we call วิกฤต ฟองสบู่แตก—and it happens more often than you think.

This isn’t a new phenomenon. History is full of examples showing that when investors rush in, prices rise to levels that make no sense. The subprime mortgage crisis in 2551 that caused the U.S. real estate market to collapse is a classic example. People borrowed to buy homes even though they couldn’t afford to repay. Financial instruments tied to these loans were in high demand. Then, when borrowers began defaulting, the whole system crashed at the same time.

Or take the วิกฤตต้มยำกุ้ง in Thailand in 2540, when interest rates were unusually high, yet the real estate market was booming. Foreign capital poured in. Investors saw profit opportunities and hurried to buy, causing prices to climb higher and higher in a feedback loop that seemed like it would never stop—until the Thai baht was devalued on July 2. That’s when the bubble burst and the economy plunged into a severe downturn.

So why does this phenomenon happen? Mostly because of psychology. Humans tend to follow the crowd. When we see others making profits, we fear missing out—FOMO. It’s real. When prices surge, that draws in even more people, which pushes prices even higher—a cycle that isn’t sustainable.

There are five steps to a วิกฤต ฟองสบู่แตก. First is market movement—something new enters the picture. It could be technology, low interest rates, or a new industry that seems to change everything. Then it moves into the upward phase. Investors flock in, prices rise, and excitement builds. People start to become overly optimistic, believing prices will keep increasing. In the fourth stage, some investors begin selling to lock in profits. The first signs of volatility appear. And finally, panic—waves of people selling to flee. Everyone tries to exit their positions, prices fall rapidly, and the bubble-burst crisis really happens.

The factors driving this crisis come from many angles. Low interest rates spur borrowing and investment. A strong economy draws in foreign capital. New technology increases demand. Shortages of assets in certain sectors—all of these get mixed with speculative behavior and a herd mentality. The result is prices that don’t reflect reality.

Bubble types are varied. Stock-market bubbles form when share prices soar far beyond their true value. Asset bubbles expand to include real estate, currencies, and even commodities such as gold, oil, and industrial metals. Credit bubbles occur when lending grows rapidly, creating fragile conditions—where a large number of loan defaults can trigger an immediate collapse.

So what should we do? First of all, review your objectives. Are you investing because you truly understand the real assets, or just because you’re afraid of missing out? If it’s the latter, you might end up helping the bubble expand.

Diversify your investments—this is the best way to protect yourself. Don’t put all your money into a single asset type. Invest gradually. Instead of buying everything at once, invest small amounts over time. This helps you avoid buying at the bubble’s peak and limits exposure to speculative assets. If you suspect a bubble is forming, that’s the time to be cautious—keep cash. Having cash on hand helps you take advantage of buying opportunities after the bubble bursts, and it acts as a safety net if you need to sell during an economic downturn.

Last but not least, knowledge is the best protection. Keep up with market information. Always do your research. Before making any investment decisions, understand what value the assets you buy truly have—not just what their market price is.

A วิกฤต ฟองสบู่แตก isn’t something you can completely avoid, but you can prepare. Risk diversification, smart investing, and a deep understanding of the market—that’s what helps you survive, and maybe even profit, amid this chaos.