“The volatility of these cryptocurrencies is pretty extreme. If you are relying on this money for your family’s basic needs, then this option should be reconsidered. It always depends on the goals and risk tolerance of the customer and on what they are comfortable with. When [this person] As he looked at his personal situation, he knew he would not be satisfied with this type of turnover, so his decision was very easy. “
Calgary-based Bosch believes that a critical role for an investment advisor is to moderate extremes. To be optimistic in times of heightened fear and to soften enthusiasm in times of extreme greed. “I get paid to see danger everywhere,” he told WP.
It’s this level of risk management – or risk vigilance – that he needs for cryptocurrencies, especially given the euphoria and new ETFs around Bitcoin and Ether. These are currencies that need to find out where their value is, but “bounce around” in the meantime. Bosch said, “I believe that people who view crypto as a form of value creation are at risk. You are a medium of exchange and people need to understand that. “
He has been a portfolio manager since 1996 and said investors need to be reminded that speculative investments are hardest hit during times of crisis. People are naturally curious about crypto because it’s on the news and has had a good run, but the market is now full of liquidity and savings have also been hoarded from the stay-at-home orders.
This has resulted in an entirely new generation of investors entering the market who may not have seen a correction before.