From Dutch Tulips to Internet Stocks, How to Spot a Financial Bubble
2 From Dutch Tulips to Internet Stocks, How to Spot a Financial Bubble
Long before SPACs and NFTs, investors clamored for everything from exotic bulbs to Pets.com. What history shows is that an inventive corner of the financial world can turn into a mania that attracts swindlers and wipes out investors
published : 10 May 2021 at 10:11
2
About 300 years ago, financiers in Europe found themselves agog about the financial prospects of novel trading companies granted special rights in international commerce by the governments of France and England.
The shares of those trading vehicles England s South Sea Company and France s Mississippi Company soared and then collapsed in 1720, wiping out hordes of angry investors.
The Argo Blockchain (ARB) share price is up 300% this year. Should I buy?
More on:
Since the start of 2021, the
Argo Blockchain(LSE: ARB) share price has increased an incredible 300%. Over the past year the performance has been even dizzier, putting on around 3,350% in that period.
Here I analyse what has driven this performance. I also explain what I plan to do next.
US$12.3 TRILLION out of thin air…
And if you click here we’ll show you something that could be key to unlocking 5G’s full potential.
Growth recipe
The company has a fairly standard sounding business model – running data centres. But it also has a specific customer focus: cryptocurrency miners. As well as offering services to customers, Argo itself mines cryptocurrency.
“Fools, as it has long been said, are indeed separated, soon or eventually, from their money. So, alas, are those who, responding to a general mood of optimism, are captured by a sense of their own financial acumen. Thus it has been for centuries; thus in the long future it will also be.”
― John Kenneth Galbraith, A Short History of Financial Euphoria
The signs of an epic bubble of historic proportions are everywhere. The stock market is a bubble, with valuations exceeding 2001. Margin debt is at all-time highs. The bond market is a bubble, with the Fed artificially suppressing rates and pumping trillions of QE into Wall Street. Housing is experiencing another bubble, with prices now far exceeding the 2005 peak. Bitcoin and the rest of the crypto-currencies are a bubble, being driven by the excess liquidity sloshing around the system. A joke crypto currency like Dogecoin soars into the stratosphere because money has no meaning anymore.
April 25, 2021 | Signs, Signs, Everywhere Signs
Jim Quinn James Quinn has held financial positions with a retailer, homebuilder and university in his 30 year career. Those positions included treasurer, controller, and head of strategic planning. He earned a BS in accounting from Drexel University and an MBA from Villanova University. He is a certified public accountant and a certified cash manager.
“Fools, as it has long been said, are indeed separated, soon or eventually, from their money. So, alas, are those who, responding to a general mood of optimism, are captured by a sense of their own financial acumen. Thus it has been for centuries; thus in the long future it will also be.”
“Fools, as it has long been said, are indeed separated, soon or eventually, from their money. So, alas, are those who, responding to a general mood of optimism, are captured by a sense of their own financial acumen. Thus it has been for centuries; thus in the long future it will also be.”
-
The signs of an epic bubble of historic proportions are everywhere.
The stock market is a bubble, with valuations exceeding 2001. Margin debt is at all-time highs. The bond market is a bubble, with the Fed artificially suppressing rates and pumping trillions of QE into Wall Street. Housing is experiencing another bubble, with prices now far exceeding the 2005 peak. Bitcoin and the rest of the crypto-currencies are a bubble, being driven by the excess liquidity sloshing around the system.