Cannabis stocks are the hottest stocks of 2018. Every year a new investment becomes the next best thing and all of a sudden everyone wants to invest in it. This cycle happens all the time. Last year, everyone wanted to buy cryptocurrencies. As a result, Bitcoin (the most notable cryptocurrency) skyrocketed to over $20,000 and then plunged over 50 percent (Bitcoin is currently trading at $6,300). Not long before that, investors were enamored with gold. The first page of nearly every consumer investment related website (i.e. CNBC, Yahoo Finance, et.) talked about how gold would hit $2,000 an oz because the assumption was that the U.S. dollar was losing value and would no longer be the currency of choice. Since then the U.S. dollar has strengthened against almost every single currency (hard and soft) and gold has lost its luster. Gold is now trading at $1,185 per oz, down 35 percent from its peak. The Wall Street Journal occasionally publishes a quiz to test the reader’s knowledge of such manias, and there are plenty of examples. Bottom line is that it’s ok to get caught up in the excitement and buy these types of investments, but as with any investment, you must be diversified.
Ara Oghoorian, CFA, CFP®, CPA is the President & Founder of ACap Asset Management.
ACap Asset Management, Inc. is a “Fee-Only” investment management firm headquartered in Los Angeles, CA specializing in helping doctors and healthcare professionals make sound financial decisions.
Contact ACap at info@acapam.com or 818-272-8511.