Straight To The Point:
Cryptocurrencies, precious metals and other hot stocks are risky but popular investments. Discover whether they have a place in your portfolio.
First Things First:
- 1:59 – In The News: Strong Earnings Report In 2018 First Quarter
- 5:07 – Mailbag: Daniel asks how to account for inflation in your retirement plan.
The Real Deal:
Investing Versus Gambling:
- 12:49 – There’s a difference in investing and gambling. When we’re investing, we understand there’s a high probability we know what the outcome will be. We also know that while the market is volatile in the short-term, it will yield consistent gains over long periods of time. However, gambling is more speculative, and when you invest in the latest and greatest stock, you’re speculating on how that one stock will perform in the future.
Risky But Popular Investments: Cryptocurrencies.
- 14:05 – Cryptocurrencies fall into the category of speculative investments. While they could quite possibly become a more viable investment in the future, their behavior is now quite volatile. This makes them a risky investment. Sure, they’re the latest craze, but we wouldn’t suggest you bet your retirement on them.
Risky But Popular Investments: Marijuana.
- 14:34 – The marijuana industry has also seen a recent influx of interest. The legalization of it’s recreational usage in many states has led to the creation of a fledgling cannabis industry. However, it’s an unproven investment. Marijuana is still illegal in several states and at the federal level. It’s also difficult to regulate, and this leaves us with several question marks when we consider it as part of a portfolio.
Risky But Popular Investments: Foreign Currencies.
- 15:03 – Investing in foreign currencies is also an incredibly speculative venture. They wildly fluctuate depending on global markets, economic crises, and international conflict. Brokers often day trade in foreign currencies. However, you should carefully consider their volatility before making them a part of your financial portfolio.
Risky But Popular Investments: Precious Metals.
- 15:21 – Precious metals like gold and silver have been around for a long time. You’ve probably heard the “Buy Gold!” commercials on several radio and television stations. There is certainly a place for them in your portfolio, but we’d hesitate to tell you to take a large position in gold or silver.
Build A Place For “Casino Money.”
- 15:55 – If you have an enthusiasm for gambling, which is how we’ll refer to investing in these areas, carve out a place for you to do so. Don’t bet your retirement on the next hot stock, but allocate five to ten percent of your portfolio to speculating. We’ll call this your fun-money. It’s okay to have a little fun, but don’t lose your shirt because you heard about a lucrative investment on a marijuana forum.
Beyond The Zone:
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