The gamification of markets spurred by the wave of retail investors has replaced disciplined investment analysis with speculation and conjecture. For a lucky few, the irrational behavior provided short-term success. However, such behavior goes hand-in-hand with steep losses… which, you guessed it… is actually gambling rather than investing.
In today’s market, many advisors don’t realize they are dealing with gambling outcomes, thereby exposing their clients to a risk that continues to grow in severity. This new dynamic makes the mitigation of gambling risk in a portfolio critical and begs the question: Are you rolling the dice with your clients' portfolios?