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Ann Nolan

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Professional Investor Called Two Financial Bubbles Correctly

Entrepreneur Paul Mampilly makes his living as a consultant, doling out expert investment advice to both average and professional investors. He opened a consulting firm in January 2013, Capuchin Consulting. Through this outfit he has an investment letter, Profits Unlimited, which is specifically directed at providing top-level advice to those people who have been overlooked by Wall Street, i.e. people who are not millionaires and billionaires.

He spent 24 years on Wall Street where he was highly successful as an analyst and then hedge fund manager. His career there began at Chatham Street Management. Although Paul Mampilly was just an assistant to a financial advisor this experience kick-started his career and led to higher and higher positions. He eventually worked for Bankers Trust Company, ING Funds, Deutsche Asset Management, and Kinetics Asset Management.

Over the course of his career, Paul Mampilly has foreseen a couple of financial collapses. The first occurred in 1999 when he saw the handwriting on the wall for the technology industry. Investors were throwing money at any company that proclaimed itself to be in the tech industry. He knew things were out of hand and warned some of his friends while removing his own money from the stock market.

He says his friends didn’t listen and one friend, Tess, kept throwing more and more money at dubious tech company stocks as the economy continued to collapse. She eventually lost all of the money she had invested because she got wrapped up in the hoopla.

Paul Mampilly called the same thing when he saw the cryptocurrency industry exploding in value through the course of 2017. He called it a bubble and said that this industry was going to implode before too long. Popular culture got way too hyped for cryptocurrencies such as bitcoin and ethereum.

Paul Mampilly saw the growth in cryptocurrencies as being entirely unsustainable. Sure enough, bitcoin hit its high point on December 17 of last year and from there it and just about every other cryptocurrency experienced very steep drops in value. Today bitcoin is trading for 1/3rd what it had been last December and popular interest has considerably waned.

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