The basis of this thesis work is the in-depth study, of market bubbles, a phenomenon that from extreme, and unwarranted, euphoria has led to the destruction of wealth and well-being throughout history. The following thesis is structured in six chapters. In the first, the concept of a bubble is explained, and the emotional phases of investors/speculators. The second chapter then analyses the psychological aspects that lead to a bubble phenomenon, through behavioural finance, a branch of finance that studies the psychological aspect of the investor, an inefficient individual unlike how standard finance assumes. The third chapter is devoted to the analysis of two major macro investment strategies, firm foundation theory and the castle in the sky theory, the latter being responsible for the major financial economic bubbles.