INVESTING
TERMS
Mastering the Basics of Long-Term Investment Strategy
Long-term investing is a strategy that involves holding onto assets like stocks, bonds, real estate, and mutual funds for several years, typically more than 5. This approach is based on the belief that markets, despite short-term fluctuations, deliver positive returns over time. Key aspects of long-term investing include compound interest, which magnifies returns over time, and diversification, which spreads risk across various types of assets. Despite potential short-term volatility, long-term investments have historically shown an upward trend in value.
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