What About Speculation?

Phil Albitz, CFP®

Phil What About Speculation

Hi Everybody,

It’s that time we send out our every other month email blog. We try our best to provide interesting and timely information. We get a lot of good feedback on this method of staying in touch with you. We appreciate the comments.

I’m going to talk briefly about what’s going on in the stock market right now. It appears that there is a tremendous amount of speculation going on at this time. If you only watch the financial news networks, you are flooded with stories about crypto currencies swinging wildly in price, SPACs and NFTs catching big bids and then catching no bids. Some individual headline making meme stocks going up and down 50% in a day. Exciting right?

I don’t know but it does give people something to talk about. While this enthusiasm is indeed happening, it is a relatively small corner of the financial markets. And while some people are making a lot of money, there are other people who aren’t as fortunate. But that’s the market and when you speculate you take your chances. At Albitz/Miloe, we prefer the investment side of the equation but sometimes that might be boring…generally effective, but yes, it can be dull.

The major indexes have been calm and strong this year. The year isn’t over yet but if they just maintain a modicum amount of the calmness we’ve seen, then this will end up being a pretty good year. I am reminded though of the old adage: “Don’t say it has been a good day until nighttime.” Anyway, back to the speculation theme. We have clients who at times like to speculate. That is not a problem as long as they understand the risks. Those of you who know us, know that we do our best to make the risk/reward equation clearly understandable.

Over the years, I’ve learned that most people say they understand risk. But when I’m sure a client truly understands risk is after risk hits and I see how they react to it. At that point, it is clear to everybody.

I’m going to close this video out with a comment I heard and want to pass on to you. It goes like this: If asked how to get rich quickly: “I can’t tell you how to get rich quickly. But I can tell you how to get poor quickly, and that’s by trying to get rich quickly.” I like that sentiment because it is so true. That’s a good one to remember and if you have kids, remind them of that.

Anyway, until next time I’m Phil Albitz. Thanks for watching.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with or without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.

Phil Albitz

CFP®

Phil Albitz is a veteran Financial Advisor and chief investment portfolio manager for our managed accounts. Phil is a CERTIFIED FINANCIAL PLANNER™ professional and has been registered in the securities business since 1982. His strength is in stock market analysis, portfolio design, and retirement income strategies. Phil works closely with clients to help them meet their goals and objectives in a personal and professional manner. He is an avid sports fan and spent many years coaching his two sons, Clete and Vance, in basketball and baseball. Currently, he is enjoying playing with and watching his grandchildren Cade, Cora, Cal and Henry, Kit, Roger as they grow and mature. Phil was born and raised in Southern California and resides with his wife, Velma, in Torrance.

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