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Long Term vs Short Term

Since the last post which would was a week ago, Marathon Oil Corporation (MRO) has risen to $51.66 a share. A $3.04 increase. This leads me into my next point, long-term vs. short-term investments. We’ve all heard the tale about the turtle and the hare, or slow and steady wins the race. These are debates that occur in the stock market as well. Both short term and long term investments have their positives and negatives and could vary between each different stock.

Let me example, short term you get your money in and out. There’s less chance of variables such as natural disasters, civil upheaval, or rumors (quickly spread rumors within the NYSE circle can tremendous impact on the stock). Add in the fact that already the majority of financial advisors keep 10% of earnings along with nearly half the profit going to the government. Plus depending on how short the term actually is there is an extra fee to sell those stocks.

You know those commercials about settled payments, “It’s my money and I want it now!” The stock market doesn’t work like that. Long term investments, the stock usually increases overtime, there is less risk (financially due to the stock probably at least balancing out), and the longer you own the stock the less the tax from the government is (the tax won’t decrease past the base percent but instead of say 45% you may only pay 35%). Negatives, you’re money is locked in the stock market and you can’t use it for anything else. So for how much you invest and what in invest in be aware of all the circumstances and make an educated decision.

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