Like the weather, hot investments can cool off
We’re in the “Dog Days” of summer — traditionally the hottest, steamiest time of year. But in a few weeks, the temperatures will begin to cool down. Nature isn’t alone in this heating-and-cooling pattern — you can also find evidence of it in the investment world. To be specific, today’s “hot” investments can lose their sizzle quickly — which means that, as an investor, you’ll need to take steps to avoid being left out in the cold. An investment can become “hot” — that is, its price can shoot up — for any of a number of reasons. For example, a company that provides a well-known product or service may decide to “go public” by making its shares available to investors; when this happens, the stocks become “hot” for a while.