Buy the Dip — The Dutch Tulip Bubble

How did a tulip bulb sell for over $1 million, in today’s money, back in 1630s Holland? During the fall and winter of 1636, tulip bulb prices increased by several hundred percent — some rose by over one thousand. People from all levels of society traded tulip bulbs. Many quit their jobs, and more bought on credit. While the Dutch Tulip Bubble is one of the most famous financial stories, most explanations are insufficient. The tulip mania cannot be explained without considering the rise of Dutch East India Company stock that coincided with the tulip bubble. During the bubble, the Dutch company’s…...