Q. What is considered a long-term investment where shares are concerned? Is it 2 years or more or some other rule of thumb?
A. There is no specific definition of “long term”, however through general convention and usage, it is typically regarded as being five or more years. “Medium term” would typically be two to five years, and “short term” less than two years.
It gets a little tricky with “short term” – because there is arguably a difference between short term investment and short term trading. For traders, the “short term” can be measured in hours or even minutes – for investors, it is more likely to be weeks or months.
I hope this helps.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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