Why do Bubbles Burst in Emerging Sectors like Crypto, Cannabis & Psychedelics? (White Paper)
New technological innovations and consumer product categories often demonstrate massive growth potential. These technologies (e.g., cryptocurrencies, virtual reality, artificial intelligence) and product categories (e.g., cannabis, psychedelic therapeutics, alternative proteins) in turn attract massive investor demand.
However, there is almost always a disconnect between consumer acceptance of these technologies/ products and the capital markets performance of these emerging sectors. What drives this dislocation? Why do investors overvalue emerging businesses at the beginning of cycles and undervalue them later-on? In this white paper, we discuss the boom-and-bust cycles of emerging sectors. We highlight the cryptocurrency, cannabis and psychedelics industries as relevant case studies.
More White Papers
DISCLAIMERS: This site is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing on this site should be construed as a recommendation by Key Investment Partners LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. Nothing in this site may be considered as an offer or solicitation to purchase or sell securities or other services.