Type: Economics
Pages: 2 | Words: 319
Reading Time: 2 Minutes

Currently, the economy is experiencing financial crisis resulting in low level of interest rates for the different investments. In addition, it is becoming risky for investors to venture on investments, because they are not sure of the future. However, it is worth noting that the higher the risk, the higher the rate of returns and vice versa (Libby, Libby & Short, 2011). On the other hand, if the risk is high, an investor can lose a lot of money. For this reason, investors are evaluating as to whether long-term fixed cash flow investments are the best or not. In deciding whether to make this investment decision, period and purposes of the investment should be taken into consideration by the investors.

In my opinion, I would consider taking a long-term fixed cash flow investment opportunity in comparison to short-term investment opportunities. When an investor is planning to take investment opportunity, he or she considers the period in which he or she will receive the returns (Libby, Libby & Short, 2011). In this case, I would consider long-term fixed assets as an investment opportunity, because they are providing me with a future benefit. Secondly, if I need short-term cash flows to finance my investments, it is easy to borrow money from the financial institutions using fixed long-term cash flows (Libby, Libby & Short, 2011).

When deciding whether to take a fixed long-term investment opportunity, I consider the purposes of the investment. I would highly consider taking a long-term fixed asset invest because the future has many uncertainties (Libby, Libby & Short, 2011). Presently, the financial crisis acts as a real life experience teaching the people. People with short-term investments had a rough time especially if they became unemployed while those with long-term investments were able to survive the crisis (Libby, Libby & Short, 2011). Therefore, using the above analysis, I will highly consider taking a long-term fixed cash flow despite the interest rates.

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