Investing, Gambling & Gamification: New Market Dynamics Demand New Portfolio Risk Metrics

The gamification of markets spurred by the wave of retail investors has replaced disciplined investment analysis with speculation and conjecture.

TwitterTwitterTwitter
ETF.com
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

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?

etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At etf.com, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.