A Comparison Between Short Term And Long Term Investments

Best short term investments

                          Short term investments

Many individuals try the stock market for making some investments and attempt to make some quick money. However, this is not a good investment idea when people have a short-term horizon in mind. If you want to make money from stock market investments, it should be from stocks accumulated over a period.

Stock investments both short and long term are associated with risks and nothing is actually guaranteed in the stock market dealings, unless and until it takes place. You find would see the market one day going up and the next day market would be down for really no reason.  So for best short term investments, stocks are not the option.

As a whole, the short term trends in the stock market are indeed risky. You may not get enough time to average up your trades. The market will be trending high and low unpredictably and you find it difficult to survive.  For the short term, the stock investments are not the option. If you are going to retire soon and want your investments to be in the stock market, that is not a good option. The best short term investments for these people are to invest in bonds, where there is security and stability for the investments.

Invest in bonds

                         Long term investments

People are generally of the view that short-term investments means something less than a year. But for stocks, five years or less could also be taken as a short term period. And some may even recommend a longer period than five years. Anyhow, a minimum of five years should be considered for investments. If you do not have the period of five years to invest, stay away from stock investments, that is the best option.

You may find that the average down period for some markets is a year, and at times, it lasts longer.  It is unpredictable and cannot in any way be predicted accurately.  So for a short term investor this down time could mean a lifetime but not for a long term investor.  Stock investments would give you many opportunities for profit over such a time-frame.

As for the best short term investments I would suggest that you turn to commodities like precious metals – gold – where you can expect to have some short term fluctuations. Of course, there is the down time but it soon reverses within a short period of a few weeks.