Course 502: Building a Portfolio, Part 2
Time Horizon
In this course
1 Introduction
2 Time Horizon
3 Liquidity
4 Legal and Regulatory Issues
5 Final Steps

Your time horizon is perhaps the most important constraint. Time can be an investor's best friend--or worst enemy. The longer the time horizon, the more risk the portfolio can tolerate. In the short term, it is more difficult to recoup the loss of any one particular asset. Over the long term, however, the portfolio can make up for any losses with other assets that outperform over time.

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