Can A Longer Investment Horizon Make You A Winner?

Stéphane Renevier

3 months ago5:37 mins

Can A Longer Investment Horizon Make You A Winner?

Long-term investors can seem pretty smug at times. They know they can benefit from opportunities that short-term investors can’t – and they get to shrug off some of the day-to-day price swings that can tie a short-term investor in knots. But that doesn’t mean a long-term approach is without its drawbacks. So, let’s talk about the pros and cons of taking the long view…

What’s the appeal of a long time horizon?

You’re less likely to end up losing money.

Invest in the S&P 500 for a day, and your chances of making money are barely higher than flipping a coin. But invest for five years, and your chances of earning a return go to 90% (if history’s any guide).

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