In general, many financial experts support their clientsโ desire to buy cryptocurrency, but they donโt recommend it unless clients express interest. โThe biggest concern for us is if someone wants to invest in crypto and the investment they choose doesnโt do well, and then all of a sudden they canโt send their kids to college,โ says Ian Harvey, a certified financial planner (CFP) in New York City. โThen it wasnโt worth the risk.โ The speculative nature of cryptocurrency leads some planners to recommend it for clientsโ โsideโ investments. โSome call it a Vegas account,โ says Scott Hammel, a CFP in Dallas. โLetโs keep this away from our real long-term perspective, make sure it doesnโt become too large a portion of your portfolio.โ In a very real sense, Bitcoin is like a single stock, and advisors wouldnโt 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 youโre passionate about it. โIf it was one stock, you would never allocate any significant portion of your portfolio to it,โ Hammel says.
The lead from Wall Street offers little clarity as the major averages opened lower on Friday and then bounced back and forth across the unchanged line, finally finishing mixed and little changed.The Dow added 33.18 points or 0.10 percent to finish at 34,798.00, while the NASDAQ eased 4.54 points or 0.03 percent to close at 15,047.70 and the S&P 500 rose 6.50 points or 0.15 percent to end at 4,455.48. For the week, the Dow rose 0.6 percent, the NASDAQ added 0.1 percent and the S&P gained 0.5 percent.The lackluster performance on Wall Street came on uncertainty about the outlook for the markets following recent volatility.
