The Speculators Dream | The Acquirer's Multiple®

During his recent interview on The Acquirers Podcast with Tobias, Colin Lancaster, author of Fed Up!: Success, Excess and Crisis Through the Eyes of a Hedge Fund Macro Trader discussed The Speculator’s Dream. Here’s an excerpt from the interview:

But I think from that original concept, it’s become a speculator’s dream, and a lot of these coins, it’s the equivalent of the meme stocks, and these are all going to just be a disaster for people who are investing in them, and think that there’s any real value, because they’re all built on the concept of a Ponzi scheme, get in early and sell it to someone else at a higher value, but there is no real fundamental value to many of these things. And I don’t like it, because I think social media and other areas have made to take the old-fashioned boiler-room pump and dump scheme to an entirely new level where people are watching Saturday Night Live to see if a comment is going to be made on a particular cryptocurrency, and what that’s going to mean. I don’t think those are healthy market dynamics.

In some ways, I would say that for me over the last– since the recovery began, call it last April, this has been a very easy period to make money. It’s hard for me to get in an Uber without a driver telling me about his success in crypto or this tech stock or that. And, boy, I just worry so much whenever markets appear easy, all my warning signals are going off, and I get really worried, because investing and beating markets is not easy. It’s an incredibly difficult thing to do, and whenever you have a period where you’re in a bubble or bubble-like conditions and it has become easy, it always ends badly for a lot of the people that are involved and that will be a really sad consequence when that happens.