DDIntel - Bubbles and Crashes

From a broad perspective, it’s easy to view the history of markets as a story of bubbles and crashes.

Recently, Michael Burry - the famous investor who has been immortalized in the blockbuster movie The Big Short - came out to say that we are in the “Greatest Speculative Bubble of All Time.” That’s a bold claim, but one that’s hard to disagree with.

Bubbles and other disruptions aside, Ann Inw reminded us not to dismiss Tether concern.

Cryptocurrencies like bitcoin have already shown signs of distress. Is this the beginning of the end for it all? Not necessarily. Some argue that there’s never been a better time to buy.

The way people participate in this market might also amplify the FUD potential and market chaos.

After all, bitcoin has come back from a massive crash before - following the winter of 2017. But, as Ann Inw pointed out, the often-overlooked details of that crash may be exactly what keeps BTC down this time around. And like many conversations these days, it comes back to The Big Short.

Still, as the potential for a crash spreading across the entire market becomes increasingly real, people are beginning to focus on longer-term investments. From old stalwarts to novel technology, there’re still a lot of real gems to be discovered.

Mike Hassaballa writes about Low Carbon Transformation - a process that many are beginning to view as essential as humanity shifts to a more sustainable way of life. Energy use levels in buildings are high, and a shift must be made. Who will end up capitalizing on this opportunity?

Have a question on Energy and Resources? Schedule a DDIChat Session with Mike here.

In an entirely different sector, Amit Garg details his investment in Iaso.ai - a telemedicine company. For those in the telemedicine sector, the realities of the COVID-19 pandemic created a testing ground, and by most accounts - they were largely successful. Now, we’ll see if they can keep it up in the post-pandemic world.

Any discussion about bubbles or the modern stock market would be incomplete without mentioning meme stocks. Their influence on the stock market has been clear, but what exactly does it all mean for the finance sector in the long term?

We’ve covered the rise of AI heavily here at DataDrivenInvestor, but what might that mean for you in the day-to-day? For our most tech-savvy readers, it could mean the opportunity to create a Chatbot of your own. Whenever you’re feeling alone, just talk to your computer!

As many companies re-open for in-person working, what lessons from the past year should leaders remember? Perhaps most importantly, they should build workplaces that foster creative thinking.

Thank you for reading DDIntel. We’ll be back in your inbox with more from the worlds of finance, technology, and entrepreneurship again soon! - The DDI Team