Investing vs. Speculating: Why Knowing the Difference Is Key

As the stock market bull potentially nears the end of its run and we head into the last two months of 2018, many investors are making adjustments to their portfolios. Over the course of my travels and in conversations with other industry experts, I’m constantly reminded the importance of:  1) understanding the difference between investing and speculating, and 2) understanding risk tolerance. These are two primary points for any investor seeking to make sound decisions with their money to understand. All definitions vary slightly, but most are along the same lines. An investment is an asset or item acquired with the goal of generating income or appreciation in the future.