If you want to get an investment professional’s heart to skip a beat, refer to the investment choices they make as “bets.” Advisers and money managers are fastidious about making clear they are absolutely, positively not gambling with people’s precious, hard-earned money.
But why? Let’s think about this rationally. Nobody entrusts their investable assets with a wealth adviser without knowing there is some risk of some monetary loss, and virtually zero risk of losing the full sum of their investment. By contrast, there are millions of Americas who wager billions of dollars per year at casinos, online gambling sites, and legal and illegal sports-betting syndicates, all of whom know financial losses are virtually a given. H2 Gambling Capital, a market data firm, estimates that U.S. citizens lost $117 billion on gambling in 2016, and that results in an additional annual cost of $17 billion in gambling-associated problems such as crime, addiction and bankruptcy. Yes, addiction. Compulsive gambling is a form of addiction that becomes worse over time, according to the National Council on Problem Gambling.