Most of the people at times feel frustrated by the performance of their investments. For instance, they anticipate growth which they don’t get it or they think the value of their investment would not fluctuate much, but it does. But, some of this irritation may be reduced in case investors are more acquainted with the nature of their investment vehicles. In particular, it is vital to keep in mind the difference between short term and long term investments.
Staale Fossberg points out various differences of long term and short term investments
Long term investments are those options which one can hold for more than one year and in fact, one can hold them for several years. On the other hand, the short term investments are meant to be hold for one year or less.
Staale Fossberg, the CEO of My Private Trade also referred to as MPT has established this in cooperation with Morten O. Andersen at Simray Holdings LLC. He has outstanding communication skills and with his connection to Simray, he has been able to create the most dynamic online concept known as My Private Trade in Europe. He specifies the differences between long term and short term investments which are explained below:
- Both long term and short term investments carry different expectations. When one purchases an investment that they plan to keep for many years, or expect the investment to increase in value so that they can ultimately sell it for a profit, it is referred to as long term investment. On the other hand, when one purchases a short-term investment option they are generally not expecting much in the way of a return or an augment in value. Usually, an individual purchases short-term investments for the comparatively greater degree of principal protection they are designed to offer.
- In case one wants to purchase investments that they intend to hold for the long-standing time frame in order to help pay for a comfortable retirement or leaving a legacy; then long term investments are the best options available. In contrast, a short term investment would be more ideal for those individuals who will need a certain amount of money at a specific time for instance to buy a car or to sponsor a vacation.
- All types of investments carry some kind of risk. One of the major risks linked with long-term investments is instability, the variations in the financial markets that can cause investments to lose value. Alternatively, short-term investment option may be subject to buying power risk which may be that the investment’s return will not sustain with inflation.
Staale Fossberg says one should know about the differences between long term and short-term investment before investing on the one. Even though Staale comes from a background in radio and TV broadcasting, he has vast experience in finance, trading and investment and has experience working in other companies such as Superdobro LTD, Jungle Norway Limited, and Conecto Invest Limited.