5 Ways to Make Sane Investments When Everyone Else Is Crazy

When grandmas and Uber drivers are boasting about profiting on Bitcoin and SPACs, don’t get sucked in to the hype. Here’s how to make sure your investments are based on reality.

A skydiver goes wild.
(Image credit: Getty Images)

The other day I received a call from a friend who wanted to know the best way to purchase a Non-Fungible Token (NFT). NFTs are one of the trendiest current investment themes. They are essentially a unit of data on blockchain that represents a unique digital item, such as digital art, audio and video files.

While it was a bit strange to receive a question about such an opaque area of the market from my friend, a social worker at an elementary school, I wasn’t overly surprised. The week before, an 80-year-old grandmother told me that she made a mint in Bitcoin, and my Uber driver told me he was considering an investment in a Special Purpose Acquisition Company (SPAC). These comments, along with the fact that every other person seems to be day trading to supplement their income, illustrate clear frothiness in the market.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Jonathan I. Shenkman, AIF®
President and Chief Investment Officer, ParkBridge Wealth Management

Jonathan I. Shenkman, AIF®, is the President and Chief Investment Officer of ParkBridge Wealth Management and serves as a financial adviser and portfolio manager for his clients. In this role, he acts in a fiduciary capacity to help his clients achieve their financial goals.