Is the bitcoin boom about to turn into one of history’s biggest busts?
The digital currency’s massive surge this year — it’s up more than 1,400% — has all the hallmarks of a huge speculative bubble, according to people such as Warren Buffett.
And if it bursts, the results are likely to be spectacular.
“In terms of how it ends, bubble history suggests it will be with a bang, rather than a whimper,” said Sharon Zoller, an economist at ANZ. “I can’t think of any reason why this time would be different.”
To better understand what may lie ahead, here’s the lowdown on four famous financial bubbles in history:
In the early 17th century, speculation helped drive the value of tulip bulbs in the Netherlands to previously unheard of prices. Newly imported from Turkey, tulips were a big novelty at the time.
Hard data from those days is scarce, so it’s difficult to gauge exactly how much prices soared. But people were putting up their homes as collateral, according to the Rijksmuseum — the Museum of the Netherlands — in Amsterdam.
Top Warren Buffett Stocks To Own Right Now: Transcananda Pipelines Ltd.(TRP)
- [By Matthew DiLallo]
Meanwhile, TransCanada (NYSE:TRP) has been working to revive its Keystone XL pipeline. After years of delay, TransCanada could start full construction next year, which would put the line into service by 2021. However, the hotly contested pipeline could face new delays or even another rejection.
- [By Paul Ausick]
In addition to the Trans Mountain system, two other pipeline projects currently are proposed to move crude oil from Alberta either to the Great Lakes or the Gulf Coast. Enbridge Inc. (NYSE: ENB) is proposing to replace its 50-year old Line 3 system to transport 760,000 barrels a day to Superior, Wisconsin. TransCanada Corp. (NYSE: TRP) has received approval from the Trump administration and would transport 830,000 barrels a day to Nebraska where existing pipelines will take over, sending the crude to U.S. refineries and Gulf Coast terminals.
- [By Matthew DiLallo]
Enbridge just bought its stake in the German offshore wind farm projectslast year, initially agreeing to invest about $1.25 billion for a 50% stake. However, with concerns growing about its balance sheet and ability to finance growth projects, the company has chosen to monetize part of this asset. It’s also monetizing its onshore renewable facilities in Canada and two in the U.S. to bring in some much-needed cash. This decision to cash in on a portion of its renewable portfolio follows a similar plan by fellow Canadian pipeline giant TransCanada (NYSE:TRP), which sold its solar assets in Ontario last year. The driving factor in that decision was TransCanada’s desire to improve its financial flexibility so that it could “continue to build on our vision of being North America’s leading energy infrastructure company,” said CEO Russ Girling. What’s clear from these deals is that neither TransCanada nor Enbridge sees renewables playing a key role in building the companies they envision themselves being.
- [By Jason Hall]
Priestley:Yeah,absolutely. The last company is also on this natural gas trend,it’s TransCanada (NYSE:TRP), ticker TRP. It’s aCanadian energy infrastructure company. They have assets in the U.S.,Canada, obviously, and Mexico. Theyoperate 40,000 miles of natural gas pipeline. Anotable project that they operate is the Keystone XL Pipeline and theKeystone Pipeline system. Italso has interests in 20 powergeneration facilities,mostly in Canada. And, they have significant scale as a midstream company. I kind of like these midstream players, because they’re really winners,so to speak, in a lot of respects. A lot of the contracts that they make with the oil refiners or the oilcompanies themselves are 15-20-year contracts.
- [By Matthew DiLallo]
TransCanada’s (NYSE:TRP) expansion efforts continued paying dividends during the first quarter as earnings and cash flow kept growing. As a result, the Canadian pipeline giant remains on track to achieve its dividend growth targets. CEO Russ Girling affirmed that view on the quarterly conference call, where he detailed the company’s progress on its strategic plan.
Top Warren Buffett Stocks To Own Right Now: Xilinx, Inc.(XLNX)
- [By Logan Wallace]
Earnest Partners LLC increased its stake in Xilinx, Inc. (NASDAQ:XLNX) by 0.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 845,144 shares of the programmable devices maker’s stock after purchasing an additional 7,393 shares during the period. Earnest Partners LLC owned approximately 0.33% of Xilinx worth $61,053,000 as of its most recent SEC filing.
- [By Logan Wallace]
Nomura upgraded shares of Xilinx (NASDAQ:XLNX) from a reduce rating to a neutral rating in a research note published on Wednesday, Marketbeat.com reports. They currently have $70.00 price target on the programmable devices maker’s stock, up from their prior price target of $60.00.
- [By Ethan Ryder]
Headlines about Xilinx (NASDAQ:XLNX) have trended somewhat positive this week, according to Accern. The research group identifies negative and positive media coverage by reviewing more than 20 million blog and news sources in real time. Accern ranks coverage of public companies on a scale of negative one to one, with scores closest to one being the most favorable. Xilinx earned a coverage optimism score of 0.18 on Accern’s scale. Accern also assigned media stories about the programmable devices maker an impact score of 47.7615347434404 out of 100, meaning that recent media coverage is somewhat unlikely to have an impact on the stock’s share price in the next several days.
- [By Stephan Byrd]
Parsons Capital Management Inc. RI cut its stake in shares of Xilinx (NASDAQ:XLNX) by 21.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 17,800 shares of the programmable devices maker’s stock after selling 4,750 shares during the quarter. Parsons Capital Management Inc. RI’s holdings in Xilinx were worth $1,286,000 at the end of the most recent quarter.
- [By ]
Cramer was bearish on Xilinx (XLNX) , Celgene (CELG) , Exelixis (EXEL) , Moneygram (MGI) , Monster Beverage (MNST) , SunCoke Energy Partners (SXCP) and Mattel (MAT) .
Top Warren Buffett Stocks To Own Right Now: Impax Laboratories, Inc.(IPXL)
- [By Max Byerly]
News articles about Impax Laboratories (NASDAQ:IPXL) have trended somewhat positive on Sunday, according to Accern Sentiment. Accern rates the sentiment of news coverage by reviewing more than 20 million news and blog sources in real time. Accern ranks coverage of public companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Impax Laboratories earned a daily sentiment score of 0.08 on Accern’s scale. Accern also gave news coverage about the specialty pharmaceutical company an impact score of 43.4189030940397 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the stock’s share price in the near future.
Top Warren Buffett Stocks To Own Right Now: Ellington Residential Mortgage REIT(EARN)
- [By Shane Hupp]
Ellington Residential (NYSE:EARN) major shareholder Holdings L.P. Blackstone III bought 11,909 shares of Ellington Residential stock in a transaction that occurred on Monday, May 14th. The stock was purchased at an average cost of $11.26 per share, for a total transaction of $134,095.34. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Large shareholders that own 10% or more of a company’s shares are required to disclose their sales and purchases with the SEC.