Markets are living, breathing organisms. They pulse with opportunity and risk, shaped by investor psychology, innovation, and, at times, sheer irrationality. As an investor, understanding market history isn’t just an academic exercise – it’s essential for making better decisions today. The Tulip Bubble: A Lesson in Speculation The Dutch tulip bubble is often cited as the world’s first recorded speculative bubble. In the early 1600s, tulips became all the rage in the Netherlands, prized for their rarity and beauty. As demand soared, so did prices, and ordinary people jumped into the market. They weren’t just purchasing tulips for their gardens–they were treating them like today’s tech stocks, speculating that prices would keep climbing. Tulips were traded as contracts, often with no intention of actual delivery, not unlike the derivatives markets we see today. At the height of this frenzy, a single tulip bulb could cost more than a house. But, as with all bubbles, reality eventually intervened. By 1637, tulip prices collapsed almost overnight. Investors who had speculated on further price gains were left with nothing but a fistful of worthless contracts. Sound familiar? Think