What is the Role of Time in Your Investment?

Everything changes time after time-which makes time an important part of every decision you make in investment. Whether you buy or sell, lend or borrow, time is a double edged sword to be used tactfully, because it can make bigger risk or bigger rewards. It depends on how you use it. time like every other variable in investing, can be managed to fit your needs. Allowing only short term use. The sooner your money will be returned to you, the fewer the chances exist for something to go wrong. So if you let go of your money for short stretches, you'll lessen time's risk. On the other hand, you won't earn as much. The less time someone has with your money, the fewer things they can do with it-therefore, the less they'll be willing to pay you for privilege of using it. Allowing longer term use. The more time remaining until your money is return to you, the more chances for something to go wrong. So, if you let go of your money for long stretches, you lose more control and subject yourself to more of time's risk. On the other hand, you can earn as more because the more time borrowers have with your money, the more they can do with it. In return, they may be willing to pay you larger fee for the use.

Mark Hugh Neri

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