“You can lose a lot, no doubt about that.”
“Yeah, people with a big problem need one of those 800-numbers to get help.”
“Right, but sometimes if ya hit it just right, you can ride that momentum for a while and make a lot of money. “
“You sure can . . . Still, it’s probably best not to tell the wife what you’re doin’.”
It’s funny to hear such a frank example of how casual bettors think. “I know the odds aren’t good, but other people have won. Who’s to say I won’t get lucky?”
Market speculators often think a similar way. This explains the mania for such longshots as cannabis stocks, crypto-currencies, the electric carmaker run by an obvious con artist, and all the other crazes we avoid for our clients at America First.
I think those casual bettors in Las Vegas have a more realistic idea of what they are doing. They know they aren’t likely to hit it big, but they count on getting their money’s worth in entertainment.
Not so the market speculators. Encouraged by Wall Street promoters to think they are part of something new and wonderful, in the end they will simply lose money.
Barry Dunaway, CFA®
America First Investment Advisors, LLC
This post expresses the views of the author as of the date of publication. America First Investment Advisors has no obligation to update the information in it. Be aware that past performance is no indication of future performance, and that wherever there is the potential for profit there is also the possibility of loss.