Bubbles can be a fantastic way to generate wealth. Amass as much cash as possible, wait for the inevitable crash (you can't time this so just be prepared for when it does happen), and then buy tons of assets for pennies on the dollar. If you truly believe in the fundamental value of the frothy asset, this approach can be a huge win. Obviously, this should not be your primary investment strategy but it worked well for me (e.g. doubled the value of my stock portfolio in 2009 and doubled the square footage of my bay area home in 2010).