Listen to a Business English Dialogue About Intermediate term
Penelope: Hey Skylar, do you know what “intermediate term” means in finance?
Skylar: Hi Penelope, yes, it refers to investments or financial instruments with a maturity period between short-term and long-term, typically ranging from one to five years.
Penelope: Right, intermediate-term investments offer a balance between risk and return compared to short-term or long-term options.
Skylar: Exactly, they can include bonds, certificates of deposit (CDs), or certain types of mutual funds.
Penelope: That’s correct. Investors often choose intermediate-term investments for their moderate risk and potential for higher returns than short-term investments.
Skylar: Yes, and the specific choice depends on an individual’s financial goals and risk tolerance.
Penelope: Absolutely. It’s important to consider factors like interest rates, inflation, and market conditions when selecting intermediate-term investments.
Skylar: Agreed. Diversifying across different investment terms can help balance a portfolio and manage risk.
Penelope: Definitely. By spreading investments across different terms, investors can better navigate fluctuations in the market and pursue their financial objectives.
Skylar: Right. It’s all about finding the right mix of investments to achieve financial stability and growth over time.