Back to Basics: Short Term Investments
Back to Basics: Short Term Investments
Short term, as opposed to long term investments, grow and show a return in a short amount of time (they usually expire within a year). They can be liquidated quickly, should you need the cash, and they are perfect for those of us who don't have the patience to wait for our vintage cars to turn valuable. However, markets are dynamic and change from year to year. And even if you are a seasoned investor, you may miss things from time to time (we tend to forget the basics as years go by).
So, to bring you back up to speed, here's five tips on short term investments
1.Keep up with the times. Just because it was a great idea to buy stocks in the west fifteen years ago, does not mean it still is now. Due to the recession, some western markets are still down. Europe is recovering, and Asia is up.
2.Consult an expert. Especially if you are a first-time investor. But besides that, it's always a good idea to get a second opinion.
3.Do your research. Yes, it's wonderful that the property prices are low in that neighbourhood and you probably would make a fortune if you renovated and resold that house.
4.Watch the markets. There is no sense in investing in stocks if you are going to leave them to fend for themselves if the market crashes. Keep abreast with what is happening in and around your investment so you can anticipate a change.
5.Explore new frontiers. Never taken out a bond? Invested in a unit trust? Why not take a stab at it now? With short term investments, you are able to invest smaller amounts of money and have them show a return much quicker.
Choosing the best investment can be difficult, so careful consideration is crucial. Your questions on best investments will be answered by our industry experts, free of charge.
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