This week’s theme is the immutable principles of successful investing.  Successful investing for the long-term requires discipline and sticking to a set of unchanging principles, and today’s immutable, unchanging principle is avoid the hype.

Look no further than bitcoin for a prime example of hype in the investment world. If you weren’t on the bitcoin bandwagon in 2017, you were made to feel like an idiot. Everyone was talking about bitcoin, and it seems everyone was doubling their money overnight. 

You know things have gotten out of hand when you hear people bragging on the sidelines of their kids soccer games about about how they’ve made 400% in bitcoin - that year alone!

Then in 2018, Bitcoin lost 70% of it’s value and a lot of people who speculated on bitcoin and bought in 2017 after the price already soared got burned...badly.

Cryptocurrencies are difficult to understand and crypto as an asset class is still a little teething toddler. So the jury is still out on the long-term legitimacy of this asset class. In addition, cryptocurrency is technology-based, which leaves this investment open to cyberattacks. Hacking is a serious risk, since there is no way to retrieve your lost or stolen bitcoins.

So here’s the point: When it comes to investing, it’s important to avoid the hype. When you feel like you’ve missed the bandwagon on something, just shrug it off. Don’t be tempted to jump in after the price has skyrocketed. Many people get romaced into buying something that they don’t really understand and haven’t done their homework on because they don’t want to be left behind.

But don’t fall for that temptation. As bitcoin and countless other hyped up investments gone bad will show you, once you feel like you missed the boat, you should just wave and let it sail on by.

In other words, avoid the hype.

That’s it for today, Thanks for listening!

Tomorrow, come on back, because I’m going to cover the importance of being tax-aware with your investments.

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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