Depending if you want to take the money out in a couple of months or a couple of years, you need to decide which is best for your goals. Having specific goals to invest in is the most critical aspect. Students may look to save for security deposits, rent, down payments, education, or any other goal, and there are many different options for investing depending on the person’s intent. Investment plans should be durable enough for the long term yet stable enough to avoid abandoning them out of fear when it gets tricky. Investors can not predict whether investments will peak or decline, but in the past, profits have shown after tricky timing if investors kept the investments through the losses. Long-term investments can provide income growth no matter the changes in the market over particular periods. Investors should choose long-term investments if they are looking for a more guaranteed and less risky way to increase income that they do not plan to use any time soon. Long-term investment requires patience to see adequate returns. As passive or long-term investments such as index or exchange-traded funds are less risky, investors who desire a guaranteed reward will most likely choose those that aim to follow market performance rather than trying to beat the market. Those who plan to make up for potential losses and own less volatile investments should look to long-term investments.
Short-term investments such as specific stocks, bonds, and other assets that can easily be turned into cash offer the potential for quick returns but have higher risks than long-term investments and are highly volatile. Investors should look to short-term investments if they want to make a large amount of money in a shorter period, although it does come with risks. Seeing which investments show a gradual increase in return and are not starting to peak is often the best choice for investors who want a somewhat ensured return on their investments, although it is highly unpredictable. There are unlimited options for students and adults to invest in, allowing a variety of opportunities no matter the time frame and no matter the intended time of investment. Do what is best for your income.
This week's investment has proven the uncertaintly of the market. The market has risen on certain days and greatly fallen on others. There is no prediction as to whether the market will keep rising or falling. There is also no finalized prediction as to whether budget cuts will happen as expected in response to the current inflation and job rate situations (strong economy, high inflation, and more jobs taken this year than expected).
If you have any questions about this week's investing or investing in general, email me at @apratt24@vms.edu
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