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

Robert Peston: Middle East conflict 'particularly problematic' for UK growth

Robert Peston: Middle East conflict 'particularly problematic' for UK growth

Robert Peston discusses at PA360

Sophia Panayi
clock 29 April 2026 • 4 min read
Dynamic Planner launches Financial Happiness Index for advisers

Dynamic Planner launches Financial Happiness Index for advisers

Consumer Duty aligned adviser benchmark based on a data set and behavioural model

Sophia Panayi
clock 29 April 2026 • 2 min read
PFS's Pathway to the Profession project hits  500-member target

PFS's Pathway to the Profession project hits 500-member target

A third of new members are women

Sophia Panayi
clock 28 April 2026 • 2 min read