In my most recent contribution, I wrote about the considerable stock market yields of 2017 (+10% on average), and the even higher scores of the model portfolios (+20% on average).
After just 10 trading days, the model portfolio ‘Belgium’ finished in first place with an increase of +17% since 1 January! The Bel20, on the other hand, quotes at +4% during the same period.
In my opinion, these types of investments are an incredible lucky break for an investment portfolio in general.
And yet, such yields do not hold up to everybody’s exxpectations. I conclude this judging by the number of questions regarding Bitcoins: when Bitcoin burst through the 10,000 USD-line, the number of e-mails and phone calls with questions on similar currencies increased exponentially.
Sufficient reason to consider the currency during this piece.
I cannot provide the answer to the question whether the value of Bitcoins will continue to increase or if it will decrease. Naturally, the chance that it will decrease is much higher now that professionals can trade futures on Bitcoins. I would say that this is a negative development, considering nobody was able to go Short before this. From this moment on, money can be made in both directions, and professionals choose the simplest direction…
As an investor, you can believe in a cause or product. The future of marihuana, cyber technology, among many others. Bitcoins are part of these as well. On the one hand, a lucky few will be able to achieve their goals successfully by investing in them, but most investors will fail. Your chance of success in such future technologies is relatively small.
Unless you have nerves of steel and a lot of luck, it is quite self-evident that only a small share of a portfolio can be invested in such matters.
Decision: Is it profitable to put a lot of time and energy in sectors with a low rate of success and a small capital, or is it better to dedicate your attention to sectors that perform better and present a wide range of opportunities?
