Market Review and Trends
Stock Market: A pile of balloons?
By SMART BETA  •  June 16, 2015
The other day I was wondering what’s the best way to describe the stock market to a 5 year old and it got me thinking that the best analogy I can come up with is that each country’s equity market is like a pile of balloons. If you are with me so far, think about it carefully, imagine these various piles with different balloons, inflating and deflating continuously. Some of the piles are bigger than others (Market sizes) and some balloons in each pile are bigger than the rest (Company sizes). Some balloons get bigger than the rest (Blue chip stocks) while some of them fail to inflate much (micro/small caps) and occasionally some of these balloons pop (bankruptcies) if a big balloon pops it impacts many of the ones around it (Large Corporation bankruptcies). Around these piles of balloons we have people who are advising (financial advisors) you regarding ......
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By SMART BETA
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