A desirable trend characterized with lots of enthusiasm and energy over a short period of time. Fads are often seen with commonconsumeritems, especially around a holiday season. Products that have fallen into this category include Beanie Babies in the 1990s, and gamingsystem in the 2000s. They can also be seen in other areas, such as investing. For example, leveraged buy-outs (LBOs) were used frequently in the 1980s for companies looking for acquire rivals, suppliers, and other related entities. In the late 1990s though, LBOs became less popular.
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Beanie babies were a fad and economic bubble in the 1990s because people were frenzied and obsessive about this stuffed animal toy for a short period of time before it quickly became valueless, and everyone forgot about it.
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Sometimes there is a new fad and if a business gets in on it early enough they can make a lot of money.