Certified financial planner, Paul Roelofse chats about some big financial questions that have come out of the year 2017.
Roelofse says that investing rests on the risk you are prepared to take in relation to your expected return.
I put together three big questions for the 2017 year, they came across my desk and it’s a very very unusual year.— Paul Roelofse, certified financial planner
Markets do not go up infinitely in a straight line so the fundamental problem with Bitcoin is that investors are speculating on past performance and have a straight line mentality says Roelofse.
Bitcoin came along as this new crazy place says Roelofse. He adds that it’s a space that no one really understands.
In our industry, we say that if it’s too good to be true then be careful says Roelofse. The surge in the price of Bitcoin to these dizzy heights is a phenomenon to say the least says Roelofse. Yet, do investors really know what they are investing in he adds.
Roelofse says that one of the big things you should be aware of when start investing, is that knowledge is power. He adds that not understanding is problematic.
I think the problem with Bitcoin still remains in that space, people are just diving into it off the back of past performances, not quite sure what they are doing.— Paul Roelofse, certified financial planner
If you want to invest in something like shares, then you have the understanding that overtime, that asset will perform says Roelofse. With Bitcoin you’re not really sure what’s going on he adds.
As we speak, in the last 7 days you would have lost nearly 30% on your Bitcoin says Roelofse
This is a frenzy which I think has got some danger points.— Paul Roelofse, certified financial planner
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This article first appeared on 702 : Three BIG financial questions in 2017