Moguls or slopestyle: What kind of portfolio do you have?

Freestyle skiers at Lake Placid, New York. Skiing, like investing, involves an assessment of risks.

This past weekend I got some great exposure to the freestyle skiing scene while taking in my son’s first competition in the sport. I have to admit that it is quite exciting to watch, especially the high-flying tricks in the two main events: moguls and slopestyle.

Interestingly, in both categories winning depended on the athletes’ willingness and ability to take risks when descending the course, even though the approaches were slightly different.

It struck me that this was not unlike investing, in which the results are also often strongly correlated to an individual’s appetite for risk, adjusted for the current market conditions.

With that in mind, here is a freestyle-inspired look at two different kind of portfolios, and why it is imperative to determine what type of investor you are in order to devise a plan that offers the greatest chance of success.

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