The time in the investment

Sociological studies and the simplest observations can set the current consumer society as more demanding, suspicious, maverick and impatient. At the same time, reducing the life cycle of products is spreading to different sectors. All this is definitely affecting investment products.

These characteristics in the financial world can be seen in the search for high returns even though it may entail more risk. Some time ago the most common investors were the shareholders of large companies. While aimed the same as today, ie profitability, betting on a firm, they undertook and part of a project could be seen. Some of these companies were considered safe investments chosen were those that could never break and / or were led by senior and known positions, sometimes related to politics. Some of them are now in bankruptcy or dissolution processes.

Distrust, partly generated by the financial crisis and these events unthinkable a few years ago, makes no longer sufficient a tiny but steady annual dividend, but today is better than tomorrow, again regardless of the risk. Next to the conventional, we can now draw a new type of investor. This can deposit funds in the morning from a mobile application to invest in an asset with strong volatility but with clear behavior and close positions at the end of the day or short term.

These factors explain the growth of leveraged products such as CFDs (introduced in Spain in 2007) where the simplicity of investment, intuitive platforms, low fees and a possible high short-term returns are the key factors.

If the weather has always been a major player in the central pairing of investments, even today it overestimates or puts it to the other two factors, reaching to evaluate an investment opportunity trinomial: Time-Risk-Profitability.