Content of the material
What I Look For In Short-Term Investments
The typical short-term investment is expected to grow for several months to a few years and can be turned into cash or other short-term investments once they reach maturity.
I look at short-term investments as a way to protect cash that I may want to use productively at some time in the future. I don’t want to lose money, so I’m not willing to take large gambles with it.
A quality short-term investment must have:
- Stability – Small historical risk of losing money over any short time period. Stocks don’t work here for me.
- Liquidity – I want to be able to easily and quickly access the investment and turn it into cash. Real estate is an example of an investment that is not liquid.
- Low transaction costs – The cost of getting into or out of the investment should be very low to 0.
(In the investing world, “long term” investments are really long term — often decades — which leaves room for short-term investments that can still last several years. Here’s a look at some of the best long-term investments you can consider.)
There are various short-term investment accounts available to you, and which is right for you depends on your particular situation and preferences.
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Why are long-term investments good?
Long-term investments give you the opportunity to earn more than you can from short-term investments. The catch is that you have to take a long-term perspective, and not be scared out of the market because the investment has fallen or because you want to sell for a quick profit.
And by focusing on the long term – committing not to sell your investments as the market dips – you’ll be able to avoid the short-term noise that derails many investors. For example, investors in the S&P 500 who held on after the huge drop in early 2020 were likely able to ride out the short-term bumps that came along with the start of the COVID pandemic before markets turned things around and surged higher once again.
Investing for the long term also means that you don’t need to focus on the market all the time the way that short-term traders do. You can invest your money regularly on autopilot, and then spend your time on things that you really love rather than worrying about the market’s moves.
Whether you’re looking to invest in the stock market for the first time or you want to rebalance your portfolio to take advantage of the hottest trends on Wall Street, the stocks listed above are compelling opportunities to look into.
You’ll notice that each of the stocks on the list fall into the big tech and e-commerce, travel, clean energy, or health care categories. These categories seem to be the home of the biggest opportunities on the market today.
Nonetheless, you should never blindly follow the opinions of any expert. Doing your own due diligence is the only tried-and-true way to make successful long-term investments.
Disclaimer: The author currently has no positions in any stock mentioned herein nor any intention to hold any positions within the next 72 hours. The views expressed are those of the author of the article and not necessarily those of other members of the Money Crashers team or Money Crashers as a whole. This article was written by Joshua Rodriguez, who shared his honest opinion of the companies mentioned. However, this article should not be viewed as a solicitation to purchase shares in any security and should only be used for entertainment and informational purposes. Investors should consult a financial advisor or do their own due diligence before making any investment decision.
C3.ai (AI 4.87%) is tapping into the enormous growth market that is artificial intelligence (AI) by providing solutions for business across data and network security, customer engagement, fraud detection, and supply chains that can be personalized for a customer’s individual needs.
Analysts see the AI market growing into a massive $1.6 trillion opportunity by 2030, and though there’s a tendency for them to simply draw straight lines up and to the right, there is some sense to this projection and that C3.ai can capitalize on it.
The AI specialist counts members of the energy industry as some of its biggest customers, and it has partnered with oil and gas services giant Baker Hughes to sell its technology into the field on a co-branded basis. And though many of its customers have been enterprise-class businesses, the downturn caused by the pandemic showed C3.ai it needed to widen its lens more, and it has since tailored its technology to businesses of all sizes.
Revenue continues to grow ahead of expectations, and C3.ai recorded a 38% increase in its fiscal fourth quarter that ended April 30. That follows a 42% increase the quarter before, so it’s not losing any momentum, and it’s in fact expanding into new markets including defense, intelligence, utilities, agriculture, chemicals, aerospace, and manufacturing.
That should help alleviate concerns about customer concentration, and with its stock down 41% in 2022 and off nearly three-quarters from its 52-week high, C3.ai may be one of the best stocks to ride the AI trend.
Determining the top 10 best stocks to buy now isn’t as simple as reading an article and starting a position in a new company five minutes later. In reality, investors must first understand what they want out of their investment portfolio before they even consider investing a dollar in a single stock. Once intentions are disclosed, investors must then take a look at the overall market and determine which stocks will thrive alongside its current trends. The best equities aren’t in their current position simply because of each company’s performance, but rather because of how well they operate in a specific economic environment. The unique combination of great companies and complimentary macroeconomic conditions will create unparalleled opportunities for patient investors.
When all is said and done, there is no way of knowing the best stocks to buy unless you set a goal. How long is the investing window? Do you prefer passive investments or active investments? What is your risk tolerance? All of these questions, and many more just like them, must be answered before anyone can determine the best stocks to buy.
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FortuneBuilders is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”), or any state securities regulatory authority. The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing provided shall constitute financial, tax, legal, or accounting advice or individually tailored investment advice. This information is for educational purposes only is not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned.