{"id":1044,"date":"2010-08-02T19:19:42","date_gmt":"2010-08-03T02:19:42","guid":{"rendered":"https:\/\/maysfinancial.local\/"},"modified":"2017-02-26T02:02:01","modified_gmt":"2017-02-26T02:02:01","slug":"longterm-investments","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/longterm-investments\/","title":{"rendered":"Long-Term Investments"},"content":{"rendered":"<p><strong>Part of: <a href=\"https:\/\/maysfinancial.local\/investing\/investment-time-horizon\/\">Investment Time Horizon<\/a><\/strong><\/p>\n<h5><strong>Typical Characteristics of Long-Term Investments:<\/strong> High Risk, Low Liquidity, High Return<\/h5>\n<h6><strong>High Risk<\/strong><\/h6>\n<p>When it comes to some high risk investments (i.e. stocks),<strong> time has a way of neutralizing risk.<\/strong> 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 <strong>over time probabilities determine performance.<\/strong> Remember, the market is cyclical. There are high and lows, peaks and valleys. <strong>These extremes are amplified in the short-term, but subdued in the long-term.<!--more--><\/strong><\/p>\n<h6><strong>Low Liquidity<\/strong><\/h6>\n<p><strong>Liquidity is the ability to quickly convert assets into cash without losing value.<\/strong> Some longer term investments are subject to <strong>liquidity risk.<\/strong> Because these are long-term investments, the liquidity shouldn&#8217;t matter much. But be aware that if you require these assets for any sort of emergency, you may sacrifice gains or even part of the principal when liquidating.<\/p>\n<h6><strong>High Return<\/strong><\/h6>\n<p>When you&#8217;re willing to accept more risk and give up liquidity, your returns will generally be higher. <strong>Everybody wants higher returns, but everybody also has different levels of acceptable risk and different needs in liquidity.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,9],"tags":[94,96,111,163],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/1044"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=1044"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/1044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=1044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=1044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=1044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}