You Asked, So We’ll Answer
FOQ: Where can I stash money for a year or two and get a decent return, without risking it?
Long: This one is as frequent as it gets. But unfortunately, risk and return are inextricably related, like yin and yang, peanut butter and jelly, Laurel and Hardy, or Tom Brady and winning (also, we’ll post a shout out in the next blog to whoever emails back the best “inextricable relationship”). We suppose the answer is relative – what does “decent” mean? You can find one year CDs for about 2.7% these days. Sure, but no one ever seems too impressed with that. If you’re looking for five or six percent, know that it can only happen with risk, meaning it may NOT happen, and you may lose money instead.
FOQ: Should I invest in marijuana stocks?
Short: Not by themselves
Long: Buying into fads is never a good idea. Many are tempted to do it. Some think they have insight that others don’t have. Others get caught up in the “irrational exuberance” of it all. The latter tends to be the more popular motive.
Either way, whether it’s marijuana stocks or any other fad, it’s a gamble, not an investment. You’re just as likely to lose as you are to win. Make sure you only gamble with money you can afford to lose.
On the other hand, investing is marked by diversification and patience, and has a positive expected return. Anyone in our lifetime who’s given it enough time has never lost while investing.
If you’re going to buy marijuana stocks, do so as part of a larger, diversified portfolio, in which you also own all other stocks – all 13,000 of them! In other words, invest in low cost mutual funds, like we do.
John, Bill, Mark & Melanie