Advisors down on crypto but give cannabis stocks a thumbs up: survey

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Cryptocurrencies are out and cannabis stocks are in, according to the latest investing trends survey by the Financial Planning Association.

The 392 financial advisors who participated in this year’s study, the 2019 Trends in Investing Survey, said that 55% of their clients have asked about investing in marijuana stocks and companies in the past six months.

The proportion of clients inquiring about cryptocurrencies, on the other hand, fell to just 25% this year, from 53% in 2018. This was the first year the survey asked advisors about cannabis stocks.

For their part, advisors remain highly skeptical of cryptocurrencies as an asset class. Just 1% of survey respondents believed they are a viable investment option that has a place in a portfolio. Another 15% said they were a gamble and investors should only invest what they can afford to lose. Thirty-four% said cryptocurrencies were an interesting concept but not an investment yet.

“It’s human nature for people to be always looking for the latest hot story,” said certified financial planner David Yeske, co-founder of registered investment advisor firm Yeske Buie, and current editor of the Journal of Financial Planning.

“I think the results show that advisors are well-grounded and they recognize that part of their job is to talk clients out of foolish ideas,” he added.

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Barry Glassman, CFP and president of Glassman Wealth Services, thinks cryptocurrencies are worth keeping an eye on.

“They could be significant in the future, but to pick a winner when there is no barrier to entry is very hard,” he said. “Ultimately, the most prominent player may not even exist yet.

“Am I willing to allocate funds to cryptocurrencies now?” he added. “No.”

Yeske thinks the biggest takeaway from this year’s edition is the…

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