Speculation must be like seasoning on a dish – a little bit goes a long way, and the sure fire way to ruin the taste for it, is to overdo it. What is speculation? Before I defend my opinion, let me clarify what I mean by speculation. To me, speculating on investments should be a combination of these things: It should be short-term oriented. By short-term I mean, anything where you can see the results within 6 months. Investing in a micro-cap fund as part of your MF portfolio is not speculative in my mind. But betting on a stock to go up (or down) in a time-frame of 3-6 months would be speculative.