What are the warning signs of a bubble? Examples of bubbles are in abundance. There is the tulip mania hundreds of years ago. There is the dotcom bubble just a few decades ago. Paul Mampilly, an expert investor, says that although we can never know what a bubble is going to be until it happens and it bursts, we can still look at past bubbles and use them to detect warning signs about current stock market trends. According to Paul Mampilly, you can then use these warnings signs to protect yourself from financial harm. Read more about Paul Mampilly at Talk Markets.
The first warning sign, says Paul Mampilly, is if there is a huge media frenzy surrounding a particular investment. If there is a lot of public interest in a specific asset, it will cause other people to start buying that asset, which will then drive up the prices for the asset as the price of an asset is always dependent on how much that asset is in demand. The problem with this kind of growth is that it is not sustainable. Thus, although in the short run it will grow, in the long run, it will crash very soon. This is because the growth is not dependent on anything substantial.
Paul Mampilly says that Bitcoin is an example of a current bubble. We all know that Bitcoin is not backed by anything substantial. It is just a digital made up currency. However, it is growing in price because of the media frenzy that is surrounding it, which is driving up the public interest in it. This is causing all kinds of newbie investors to start buying it. Experts like Paul Mampilly are using these warning signs to predict that Bitcoin is a bubble and that it will crash very soon. Watch videos on Paul’s Youtube channel.
Paul Mampilly is honest. He says that other investors are telling him and writing him emails stating that he is just being a sour loser because he did not invest in Bitcoin. However, that is just a gross misrepresentation of the truth. Paul Mampilly is very careful about his investments. He does a lot of research into them, and that is why he did not invest in Bitcoin in the first place. At the end of the day, he was proven right when Bitcoin dropped to a price of only six thousand dollars in 2018 and is still around there. View: https://www.dailyforexreport.com/paul-mampilly-struck-gold/