As a kid, I used to love balloons. I’d see them at the grocery store or at a fair, marveling at the colors and designs. If my parents bought me one, I’d do my best to hold tight so the balloon wouldn’t get away. (Side note: Is there a more helpless feeling as a kid then when a balloon slips from your hand and floats away?) Once safely inside the house, playtime began! No matter how I batted it down, I couldn’t keep a good balloon from going up, up, up. Many investors think that markets work this way; they blindly place their hard-earned dollars into investments that they don’t truly understand while ignoring the risks because the stock market “always goes up.” But balloons will eventually come down, and even the best markets can run out of energy. Educating yourself on different investment styles and risk evaluation can help you to build a portfolio that doesn’t run out of helium.
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