Millennials trust bitcoin more than banks

By Asset Allocation FOXBusiness

Smart investing advice for millennials

Wealthsimple CEO and founder Michael Katchen offers suggestions for the type of stocks that millennials should be investing in and explains why holding a diversified portfolio is so important.

Millennials are turning a blind eye to banks and betting on bitcoin to boost their portfolio, according to Wealthsimple CEO Michael Katchen, a millennial investment specialist.

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“Everybody is putting trust in bitcoin these days in the same way they saw the dot-com bubble. It’s sexy, it’s growing like crazy, [and] people think that’s great,” Katchen told the FOX Business’ Stuart Varney on “Varney & Co.”

Despite this, Katchen advises minimizing exposure to bitcoin and looking to socially responsible investments which seek to align with personal values.

“Don’t put more than 5% of your portfolio in something like bitcoin because we have no idea what that’s going to do in the future,” he said. “The key is be comfortable that whatever you invest [in bitcoin] may go to zero and put the rest in a thoughtful diversified portfolio.”

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Rather than investing in individual stocks, Katchen suggests looking to bank and technology stocks along with bonds and real estate to match your long-term risk tolerance.

“The data would show that if you just maximize your profit by picking stocks, [and] trusting investors that say that they are the best stock pickers on the street, you’d actually underperform the market in the long term,” he added.

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