“Don’t It Always Seem To Go, That You Don’t Know What You Got Til It’s Gone?!”

Joni Mitchell was right. And we usually gain perspective when we’ve examined the real truth from our arc of progress, and that of others…in anything. We can only play games with our Friend in the Mirror for so long…especially as regards our money and investments. I know. Been there, done that.

Yes, I’ve been a portfolio manager, stock broker and trust investment officer. I’ve had more investment experience than most, but truth be told, I gained more humility than expertise. And that’s probably my greatest strength. Folks have presumed I “know stuff,” have occasionally asked me for counsel, but I often respond that, “I used to be an expert. Shortly after college, when I thought I knew everything, my father gave me $10,000 to invest. I parlayed that into $1500 (yes, fifteen HUNDRED) in no time.” That was a humbling experience to help me launch my career. We should all be so lucky.

Many Current “Investment” Options Are Dangerous and Seductive. Pay Attention.

Believe me, I understand the allure and hype relative to crypto, the predictive markets and sports betting. And you can always find someone who brags about the short-term gains from some of these “investments.” However, ask these folks to check in over time, and you’ll often hear another story…involving disappointment, losses and growing credit card liabilities.

Too many folks of all backgrounds have climbed on the predictive markets and sports betting bandwagons, and most are net losers. Trust me. But, ask them for an honest appraisal of their experience. Let them honestly share their realtime circumstances. I’m especially concerned about the young folks and others who are enamored of the “quick payoff” potential, yet too inexperienced to appreciate the costs and loss potential.

Keep Your Exuberance in Check…With Quality, Diversification and Patience…

If you can afford to lose it, allocate no more than 10-20% of your portfolio to speculative alternatives…crypto, commodities, options, emerging stocks, etc. But, formulate your principal portfolio with diversity, quality and a patient longer-term horizon. Seek experienced counsel to complement your objectives and pay attention. You’ll sleep better, and your returns will be less volatile and less subject to short-term market emotions.