Why 'time horizon' is one of finance's most misunderstood concepts

Why 'time horizon' is one of finance's most misunderstood concepts

clock

PA's resident behavioural finance expert Greg Davies examines why an investor's time horizon is so often misunderstood…

In investing - as in life - ‘long term' can mean different things to different people. Similarly, one's emotional horizon, although rarely considered at the outset, can sometimes take years off the period of time that an investor stays in the market. While sensible financial advice extols the value of long-term investing, views vary over what 'long term' really means. Similarly, the notion of an investor time horizon remains one of the most misunderstood concepts in finance. First, let's look at what the investment horizon is not: When thinking about your overall portfolio, your time ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Titan Wealth to provide financial education to pro cricketers

Titan Wealth to provide financial education to pro cricketers

Professional sport comes with 'a very different financial journey'

Laura Miller
clock 16 September 2026 • 2 min read
CII New Gen group takes on young adviser shortage

CII New Gen group takes on young adviser shortage

Hollee Vivian launches initiative with adviser peers

Isabel Baxter
clock 15 September 2026 • 4 min read
News editor's view: The advice profession is getting bigger, but is it getting better?

News editor's view: The advice profession is getting bigger, but is it getting better?

The news editor's Friday Night Takeaway from 11 September

Isabel Baxter
clock 11 September 2026 • 3 min read