Bitcoin – Irrational Exuberance 2.0

Every day there are articles and postings about potential new “investments” – Bitcoin, NFT’s, and SPAC’s.

Given the magnitude and the implications of this responsibility, fiduciaries are charged with acting prudently.

Legions of consultants stand ready to assist plan fiduciaries in determining whether a manager or strategy fits within an asset allocation plan or within investment guidelines.

When it comes to most of these new investment opportunities, however, there simply is no performance history.

The pent-up demand is staggering; so is the urge to make up for the lost time and the lost earnings.

If a review indicates that changes to a portfolio might be warranted, they must start with the investment guidelines for the plan and the assumptions underlying the guidelines.

Bitcoin, NFT’s, and SPAC’s are the glittery new objects in the investment universe.

However, I also know that as a fiduciary, I must keep my eye on these new investments, as well as others that come onto the horizon.

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