The U.S. Securities and Exchange Commission (SEC) has issued a warning to investors regarding the fear of missing out (FOMO). The SEC emphasized that just because others are investing in a particular opportunity, it does not mean that it is the right choice for everyone. The agency acknowledged the growing interest in online investing and the surge of digital assets and meme stocks, which can be overwhelming for investors to understand.
SEC's FOMO Warning
The SEC's Office of Investor Education and Advocacy recently posted a warning about the risks associated with FOMO on the social media platform X. This warning is part of a series of advice from the agency. The Office urged investors to avoid succumbing to FOMO and emphasized the importance of choosing investments that align with their individual goals and needs.
The SEC's warning post referred to an article on the regulator's website that elaborated on FOMO. The SEC highlighted the increased interest in online investing and the proliferation of digital assets and meme stocks. The agency explained that digital assets encompass cryptocurrencies, coins, and tokens, including those offered through initial coin offerings (ICOs). Additionally, the SEC mentioned the phenomenon of meme stocks, which are often driven by internet popularity and social sentiment rather than traditional stock value. The agency also cautioned about non-fungible tokens (NFTs).
The SEC's warning coincides with its upcoming decision on spot bitcoin exchange-traded funds (ETFs). An announcement is expected early next week, potentially opening the door for trading of approved spot bitcoin ETFs starting on January 11. Several applicants are optimistic about their ETFs receiving approval, with reports suggesting that Blackrock, the world's largest asset manager, has secured over $2 billion for its spot bitcoin ETF launch.
What are your thoughts on the SEC's FOMO warning amidst the anticipation of spot bitcoin ETF approvals? Share your opinions in the comments section below.
Frequently Asked Questions
How much should precious metals make up your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. This makes them valuable in investment and trading. Gold is currently the most widely traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also not affected by inflation and depression.
In general, prices for precious metals tend increase with the overall marketplace. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Since these are scarce, they become more expensive and decrease in value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are “precious metals” because they are hard to find, and therefore very valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used for precious metals. Bullion refers actually to the metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. You'll get dividends each year.
Precious metal IRAs have no paperwork or annual fees. Instead, you only pay a small percentage on your gains. Plus, you get free access to your funds whenever you want.
What is the best way to hold physical gold?
Gold is money. Not just paper currency. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. The liquidity of gold makes it a good investment. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
finance.yahoo.com
cftc.gov
How To
The best place to buy silver or gold online
To buy gold, you must first understand how it works. Gold is a precious metal similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They are not exchangeable in any currency exchange system. A person can buy 100 grams of gold for $100. Each dollar spent by the buyer is worth 1 gram.
You should also know where to buy your gold. There are many options for buying gold directly from dealers. First, go to your local coin shop. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. Private sellers typically charge 10% to 15% commission on each transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
Another option for buying gold is to invest in physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. The pawnshop is a small business that allows customers to borrow money to buy items. Banks tend to charge higher interest rates, while pawnshops are typically lower.
A third way to buy gold? Simply ask someone else! Selling gold can also be done easily. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Kevin Helms
Title: The U.S. Securities and Exchange Commission (SEC) Warns Investors About FOMO
Sourced From: news.bitcoin.com/sec-issues-fear-of-missing-out-warning-ahead-of-spot-bitcoin-etf-decision/
Published Date: Mon, 08 Jan 2024 00:30:49 +0000
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