Part of: Investment Time Horizon
Typical Characteristics of Long-Term Investments: High Risk, Low Liquidity, High Return
High Risk
When it comes to some high risk investments (i.e. stocks), time has a way of neutralizing risk. This is why in 2008 some stock market investors were down over 35% while historically the stock market returns approximately 10% annually. It is acceptable for long-term investments to be high risk because over time probabilities determine performance. Remember, the market is cyclical. There are high and lows, peaks and valleys. These extremes are amplified in the short-term, but subdued in the long-term. [Read more…] about Long-Term Investments