Stocktake: We all knew the bubbles would burst

Dogecoin, the joke cryptocurrency valued at almost $90billion (€86.6 billion) a year ago, has lost over 90 per cent of its value. Is anyone surprised?

The same question could be asked about countless other deflating assets, whether it be crashing cryptocurrencies and NFTs, the outrageously expensive stocks that dominated Cathie Wood's much-hyped Ark Innovation ETF (down over 75 per cent), companies such as Zoom being valued at more than oil giant Exxon Mobil, and so on.

As Ritholtz Wealth Management's Nick Maggiulli recently noted, "we all knew this would happen". And yet, Maggiulli confesses he dabbled in altcoins earlier this year, before selling at a 70 per cent loss.

He quotes billionaire investor Stanley Druckenmiller. Asked what he learned after he lost $3 billion during the dotcom bubble, Druckenmiller replied: “I didn’t learn anything. I already knew that I wasn’t supposed to do that.”