Richard Yu, CEO of Huawei's consumer business, said Huawei's own operating system for smartphones and laptops could be ready for use in China by fall this year.Technologyread more
Among the many ways Trump has shattered White House norms, his impulsive public communications rank among the most consequential. By inspiring investors or spooking them, his...Politicsread more
A federal judge in New York City on Wednesday said Deutsche Bank and Capital One can turn over financial documents related to President Donald Trump and his businesses in...Politicsread more
CNEX, backed by Microsoft and Dell, filed new allegations in a Texas suit accusing China's Huawei and an executive of trade secrets theft.Technologyread more
With Amazon and Walmart facing regulatory hurdles in India, Reliance's Mukesh Ambani isTechnologyread more
Japan's Panasonic said on Thursday it has stopped shipments of certain components to Huawei Technologies to comply with U.S. restrictions on the Chinese company.Technologyread more
Treasury Secretary Steven Mnuchin told CNBC on Wednesday that a trip to Beijing to resume trade negotiations has not been scheduled yet, reducing hopes of a speedy resolution...Asia Marketsread more
Research analyst Adam Jonas, a long-time Tesla bull, said it's extremely unlikely that big tech firms like Apple or Amazon would buy it.Technologyread more
The disclosures come as a federal judge ruled Wednesday that two other banks — Deutsche Bank and Capital One — can give financial documents to Congress, NBC News reports.Politicsread more
Shares of L Brands, the owner of Victoria's Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and...Retailread more
Officials remained firmly committed to a "patient" policy stance at their meeting earlier this month.The Fedread more
Bitcoin might be winning back favor in the public eye. , chief economic advisor at Allianz,
The highly volatile cryptocurrency made waves recently after falling 70 percent from its peak, when the price was near $20,000. But today it’s reaching a point where it might be worth considering again. It was trading around $5,870 as El-Erian made his statement on CNBC's “Squawk Box.”
Some financial advisors are skeptical, however. Traditionally, bitcoin is not an advisable investment for someone who wants to grow their portfolio, advisors said.
“Regardless of where the price is, any investor should be cautious before investing,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth and a “By and large cryptocurrencies are speculative and should be treated as such.”
Bitcoin is alluring to many because of the classic risk versus reward scenario it offers, Boneparth said.
“It’s cool, it’s in the news, it’s fresh,” Boneparth said. “But it does not change the rules of the game.”
Priya Malani, founding partner of Stash Wealth, agrees. She said bitcoin is a gamble, not an investment.
“If you want to gamble with your money you might as well go to Vegas, it’s much more fun,” she said.
For those who still want to buy in, she said clients could take out a tiny portion of their investments to purchase bitcoin. She said it should be 3 percent or less.
Not all financial advisors are against investing in bitcoin.
“I believe that certain crypto assets, bitcoin and ethereum, are poised for a strong future,” said Ric Edelman, founder and executive chairman of Edelman Financial Services. But, investors “have to stay very long-term focused and recognize that it’s still the Wild West.”
He said that cryptocurrencies are a legitimate asset class to diversify your portfolio, but for any investor it should make up less than 5 percent.
“You have to treat it as lottery tickets, be prepared to lose what you invest,” Edelman said. In addition, he said investors should also look at investing strategies like dollar-cost averaging, investing a specific amount of money at a consistent interval, to help reduce risk.
Other advisors might not recommend investing in bitcoin specifically, but see value in the cryptocurrency industry.
“It is an emerging industry, and we are in the early innings,” said Joe Elsasser, president of Covisum, a financial planning software company. He said to look across the industry to invest.
“It’s dangerous to try to pick one company or one currency and expect that if we fast forward 10 years that one will be the winner,” he said.
More from Personal Finance