PROS OF LONG TERM INVESTMENT
1* Potential For Higher Returns: Long term investment typically have the potential to generate higher returns compared to short-term investments due to compounding over time.
2* Lower Taxes: Long term capital gains are often taxed at lower rates than short gains, providing potential tax advantages.
3* Less Stress: Long-term reduces the need to constantly monitor and react to short term market fluctuations, leading to lower street level.
4* Diversification Benefit: Holding investments for the long term allowed for better Diversification across asset classes reducing overall portfolio risk.
5* Time To Ride Out Volatility: Long-term investors have the luxury of riding out market Volatility and recovering from downturn over time.
CONS OF LONG-TERM INVESTMENT
1* Lack of Liquidity: Long-term investments may tie up funds for extented period limiting access to cash when needed.
2* Potential For Losses: While long-term investment has the potential for higher returns, it also carries the risk of sustainted Losses over time.
3* Opportunity Cost: Money invested for the Long-term may miss out on short term investment opportunity that could provide higher returns.
4* Market Uncertainty: Economic and market condition can change over time, affecting the performance of Long-term investments.
5* Requires Patienc: long-term e patience and discipline to stick to the investment strategy despite short-term fluctuations or setbacks.
THIS IS NOT FOR FINANCIAL ADVISE. IT'S LITERALLY FOR EDUCATIONAL PURPOSES