It is normal for frustration to set in when the performance of any of your investment is below par. For instance, if you don’t get the expected growth then you might lose value in your investment. But most of the frustration comes since some investors fail to understand the difference between long-term and short-term investments.
To set things straight, long-term investments are those which you can hold on for several years while short-term only last for one year or less. When talking about Middle East investing, most people always make splendid statements to the extent that you may think investment basics have not changed a bit.
However, this is quite the opposite since long-term investment has undergone transformation within the few years which have gone by. These transformations have in turn led to some new challenges which need to be resolved as quickly as possible. Below are some of the new challenges which long-term investors face:
Volume and Speed of Information
One of the most daunting challenges of long-term investment is the absolute speed and volume of information. Initially, getting relevant information about any company was quite hard since investors only relied on annual and quarterly reports.
Now this is a thing of the past since companies can now easily transfer information be it daily price fluctuations or even changes in the stock market. This action floods the market with information thus making it difficult for long-term investors to make the correct decision.
Market Reactions
Many long-term investors are now suffering from inaccurate information which is hitting the market at a very alarming rate. Not even investors who have a good handle on information can escape this inaccurate information since there is a low probability of correcting it.
Any irrelevant information that hits the financial market is likely to cause an interruption in the flow. Inaccurate information coupled with the extreme market reactions means investors are now overreacting. This is mainly because they lack enough time to analyse what is being posted in the market
Ensure you understand what goes into the best short and long term Middle East investing decisions before deciding on anything.
