Harry S. Dent, MBA
Dent Research
There are two types of stock bubbles – normal stock bubbles of five years or so and shorter-term, more extreme bubbles – and we’re currently in the midst of both kinds.
Both are characterized by irrational behavior…
A complete break from any fundamentals.
On Thursday, I’ll talk more on Thursday about how this is the case with the stock bubble. But today, let’s compare the cryptocurrency bubble to five other quick-and-nasty bubbles that have wiped out investors in the past. I’m talking, of course, about the tulip bubble, the South Sea and Mississippi bubbles, the internet bubble, and the recent China bubble. All of them have something in common, and that’s really bad news for those latecomers to this Bitcoin bubble.
The thing with this crypto bubble – and all the bubbles, stock and short-term alike, that have come before it – is that it ultimately results in a shakeout. It destroys all the flotsam and jetsam lurking in the market in question. And it presents once-in-a-lifetime wealth-building opportunities.
Take Amazon for example. During the dot.com boom it went to $113 per share. Then the crash brought it tumbling down to just $5.50 a share – down 95%. It survived though, and today one share goes for more than $1,300. That’s a 240 times gain!
The same kinds of opportunities will present themselves once this crypto bubble has burst. We believe one cryptocurrency in particular is in a good place to survive the shakeout ahead. Think of it as the Amazon of the cryptocurrency world. We recently shared details of this little gem with Boom & Bust subscribers in four new special reports. If you haven’t seen them yet, you can find them here.
The content of our articles is based on what we’ve learned as financial journalists. We do not offer personalized investment advice: you should not base investment decisions solely on what you read here. It’s your money and your responsibility. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don’t trade in these markets with money you can’t afford to lose. Delray Publishing LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers.
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