The Top City boss today criticized celebrities promoting cryptocurrencies to the general public and acknowledged that the lockdown-induced stock trading boom is over.
Andy Bell, founder and chief executive of leading investment platform AJ Bell, said Hollywood actors should not give investment advice.
Gwyneth Paltrow, Reese Witherspoon and footballers John Terry and Paul Pogba have all been supporting crypto investments lately. Matt Damon told the audience that “luck favors the brave” in the Crypto.com ad.
Analysis shows that those who followed the advice of celebrities lost half their money.
The cryptocurrency market has grown in popularity with 2.3 million Britons. Recently, the $200 billion coin has declined in value in a single day last week. The most famous is the bitcoin halving in six months.
The celebrities were criticized after the accident for failing to say anything about what they were promoting.
Bell told the Standard: “It’s not helpful, you’ll never find me advocating crypto, it’s fresh air and promises. People invested in good faith. They lost their shirts, their trousers and their underpants. Huh.”
There are growing calls for a regulatory crackdown.
AJ Bell today reported £75 million in revenue for half a year in a row and £26 million in profits with a slight decline.
The lockdown boom, which saw WFH savings cost thousands on stocks, is over.
Bell said: “No one ever thought this would go on indefinitely. We are seeing behavioral activity aligning with pre-Covid levels, with frequency of behavior returning to normal.”
It also suggests that the day-trading boom, led by apps like Robinhood, may also be having its day.
Meanwhile, AJ Bell saw customer numbers ranging from 35,000 to 418,000, most of whom stayed with its platform for the long term.
Bell said the recent stock market turmoil should not worry his clients.
“Investing is a long-term business. Things will get better with time. What’s the option, sell and sit in cash? Sell and try to time the market? It’s a fool’s game.”
AJ Bell is paying a dividend of 2.78pa share, valued at £2.6 million, to the CEO who is the largest shareholder.
Shares of AJ Bell are down 40% this year as Citi bet the retail investor boom would subside. They grew from 6p to 261p, leaving a business worth over £1 billion.
Bell feels that the recent correction in the stock market could be helpful for those who think they can get rich quick.
“I hope this is a gentle reminder that doesn’t scare people. They shouldn’t run to hills. It’s a clear justification for having a diversified portfolio. Many people should be buying funds instead of individual stocks, perhaps tracker funds.” , “They said.
Credit: www.standard.co.uk /