Michael T Haas is an experienced venture capital investor who has started a number of businesses and knows a lot about different kinds of investments. Investments in stocks can be great or terrible depending on the timeframe of your goals.
Short-term periods last less than one year, meaning that you will need to get your investment back in less than twelve months. Stock behavior is really unpredictable in the short term because of the volatility of the market. If you follow the news even for a short period of time, you will see that companies of all sizes routinely miss the expectations of analysts, causing their stocks to go down in the short term. Stock prices in the short term may also change drastically because of various irrational factors. This is why if you have short-term financial goals and need to save money for a vacation, new car, or medical bills, you should not invest this money in the stock market. If you do, be prepared to lose the entire amount very quickly. During the bubble of the late 1990s, some stocks could go up twenty to fifty percent in just a few short months. Of course, this did not last long, and from 2000 to 2003 these same stocks fell up to eighty-five percent. Unless they have some insider information, no one knows if the stock is going to go up or down in the short term. This is why experienced investors like Michael T Haas know that a certificate of deposit at your local bank is a much better strategy for short-term investing than the stock market. Comments are closed.
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