Long-term scope of stock

Oluwasegun purpose

Active member
Stocks are extremelysensitive to the different ups and downs of the market over the short-term...since market conditions are changed with respect to any change in inflation or interest rates, this may have an impact on the value of the stocks you hold.Other factors that influence the performance of the market are different events happening both on domestic and foreign arenas...

All of these factors are out of the scope of control of both investors and companies...thus even the well performing companies can be helpless in the conditions of a falling market which depreciate the value of their stocks..

as a result many financial expert don't recommend stocks investing to individual that foresee the need of money in the short-term... This is so since the Dynamics of the market conditions may end you up with less money exactly at the time you need to retrieve them..

in order to become an educated stock investor you should always keep in mind that stock are an investment tools that give the best result over the long term.. only then they are positive reward can be felt...

it is advisable to move your assets two more secure investment when you Foresee that you will need some cash out of your stock investment..... Some potential praking places include fixed-income investments (e.g bonds,bank CDs) or other products that are characterized by substantial stability....

a planning of three to five years ahead of the time you will need the money is recommended...reasonable judgement is required in order to make a good prediction on when exactly you will need the money so that you can plan ahead the reallocation of assets..after you have determined that you should select the stable products at which you can transfer your assets..

Additionally , the transference of assets from stock to another asset class can be done in phaces

The reliance on high return on your stock investment may have a reverse effect on your money.. this can happen due to the Dynamics of the market.. the market can go against you and ruin the success of your financial goal
 
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