In investing, the greater the potential reward, the greater the risk. Common stocks have the potential to offer high returns in the long term. In the short term their values move up and down so much that it is impossible to predict whether your return will be positive or negative.

Have you ever been presented with a list of mutual funds and been struck with total confusion? Maybe it occurred when you started a new job and the human resources representative presented you with the abundant investment choices for the company’s retirement account. Or maybe you visited an investment company website like Vanguard or Charles Schwab determined to start investing and found yourself overwhelmed.