In general, many financial experts support their clientsβ desire to buy cryptocurrency, but they donβt recommend it unless clients express interest. βThe biggest concern for us is if someone wants to invest in crypto and the investment they choose doesnβt do well, and then all of a sudden they canβt send their kids to college,β says Ian Harvey, a certified financial planner (CFP) in New York City. βThen it wasnβt worth the risk.β The speculative nature of cryptocurrency leads some planners to recommend it for clientsβ βsideβ investments. βSome call it a Vegas account,β says Scott Hammel, a CFP in Dallas. βLetβs keep this away from our real long-term perspective, make sure it doesnβt become too large a portion of your portfolio.β In a very real sense, Bitcoin is like a single stock, and advisors wouldnβt recommend putting a sizable part of your portfolio into any one company. At most, planners suggest putting no more than 1% to 10% into Bitcoin if youβre passionate about it. βIf it was one stock, you would never allocate any significant portion of your portfolio to it,β Hammel says.
Traders also expressed uncertainty about the situation with China Evergrande, as the indebted property company has not provided clarification about a key interest payment.In economic news, the Commerce Department reported an unexpected increase in U.S. new home sales in August.Crude oil prices climbed Friday and front-month WTI oil futures contracts saw gains for a fifth straight week amid tighter supplies. West Texas Intermediate Crude oil futures for November rose $0.68 or 0.9 percent at 73.98 a barrel. WTI Crude futures gained 2.8 percent for the week.
