Do you feel a certain amount of dread for not owning cryptocurrencies or being part of the latest stock sparking conversations on Reddit, but don’t feel the need to jump in? If so don’t worry.
According to Scott Newhouse, a financial planner stated“It may feel like a wise choice to get in, but chasing hot stocks often leads to under performance in your returns as their out performance won’t last forever”.
It is perfectly reasonable to stick with time-tested investment strategies, such as a low-cost, well-diversified investment portfolio of stocks and bonds; or the simple concept of buy low, sell high.
I remember the tech boom of 2000; millions were thrown at the feet of people who only had an idea and not a product. All were told that the old measurements were done and obsolete. But alas they were wrong. A company still needs to have a product and sales to cover the expenses after the stock issuances are done.
Instead of investing in what you don’t fully understand, try something that you do.