I'll ask it again, why are we surprised?
Several legendary investors have been pounding the table for years and no one wanted to listen.
Jamie Diamon, the head of JPMorgan Chase who successfully navigated the bank through the financial crisis and who many consider to be one of the finest bank CEOs has called it "worse than tulip bulbs" and a "fraud."
Warren Buffett, the greatest investor of all time hasn’t been shy about his views, saying "it will come to a bad ending."
And Charlie Munger has called it "rat poison squared."
More recently, Larry Fink, CEO of BlackRock the largest asset manager in the world which manages over 10 trillion in assets has said, "I actually believe most of the companies (crypto related) are not going to be around."
So why are we surprised that we’re seeing crypto companies, crypto assets, and related investments crash and file for bankruptcy.
How does this happen?
One powerful force that drives people to make irrational decisions is that it's next to impossible to argue against someone, when that someone wants to get rich quick...and many crypto enthusiasts thought they could get rich quick.
As an individual investor, do you really think you have More Insight, More Experience, Deeper Knowledge, and a Better Understanding than these three individuals when it comes to investing?
Read that last sentence again.
Really, do you?
I'm proud to say, my firm never promoted, never endorsed, and never believed in crypto investing. Many financial institutions (including Fidelity Investments) and advisors (like Ric Edelman) have pushed their clients into this so-called "asset class."
Investors are paying their financial advisors for sound investment advice, not for get-rich-quick schemes that in the end never work out well.
-Paul R. Rossi, CFA
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