Intermediate-Term Goals
Intermediate term refers to your financial goals that you plan to reach within five years. If, for example you want to accumulate funds to put money down for investment in real estate four years from now, some growth-oriented investments may be suitable.
Although some stocks may be appropriate for a two or three year period, not all stock are good intermediate-term investments. Different types can categories of stock exist. Some stocks are fairly stable and hold their value well, such as the stock of much larger or established dividend-paying companies.
Other stock have prices that jump all over the place, such as the stock of untested companies that haven’t been in existence long enough to develop a consistent track record.
If you plan to invest in the stock market to meet intermediate-term goals, consider small-cap companies on our penny stock picks because our penny stock picks have a potential growth and suitable for intermediate-term and long-term goals.
Preparing for the Long Term
Stock Investing is best suited for making money over a long period of time. When you measure stock against other investments in terms of live to ten or more years, they excel. Even investors who bought stocks during the depths of the Great Depression saw profitable growth in their stock portfolios over ten years period.
In fact, if you examine any ten year period over the past 50 years, you see that stock beat out other financial investments (such as bonds or bank investments ) in almost every single ten year period when measured by total return (taking into account reinvesting and compounding of capital gains and dividends)! As you can see, long-term planning allows stocks to shine. Of course, your work doesn’t stop at deciding on a long-term investment. You still have to do your homework and choose stocks wisely because, even in good times, you can lose money if you invest in companies that go out of business. We will Show you how to evaluate specific companies and industries and alerts you to factors in the general economy that can affect stock behavior.
Because you can choose between many different types and categories of stocks, virtually any investor with a long-term perspective should add stocks to his investment portfolio. Whether you want to save for a young child’s college fund or for future retirement goals, carefully selected stocks have proven to be a superior long-term investment.
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