Listen to a Business English Dialogue About Short term
Keith: Hi Faith, have you ever considered investing in short term assets?
Faith: No, I haven’t. What are short term assets?
Keith: Short term assets are investments that can be easily converted to cash within a short period, usually within one year or less.
Faith: Can you give me some examples of short term assets?
Keith: Sure, examples include cash, certificates of deposit (CDs), Treasury bills, and money market funds.
Faith: What are the benefits of investing in short term assets?
Keith: Investing in short term assets can provide liquidity and flexibility, as you can access your funds quickly if needed without having to wait for a long maturity period.
Faith: Are short term assets considered low risk?
Keith: Generally, yes. Short term assets are often considered lower risk compared to long term investments because they typically have less exposure to market fluctuations and interest rate changes.
Faith: Do short term assets offer high returns?
Keith: Not usually. While short term assets provide safety and liquidity, they often offer lower returns compared to long term investments like stocks or real estate.
Faith: How do you decide which short term assets to invest in?
Keith: It depends on your investment goals, risk tolerance, and time horizon. Some investors prefer low-risk options like money market funds, while others may seek slightly higher returns with Treasury bills or CDs.
Faith: Are there any downsides to investing in short term assets?
Keith: One downside is that the returns on short term assets may not keep pace with inflation over the long term, potentially reducing your purchasing power.
Faith: Thanks for explaining, Keith. Short term assets sound like a good option for preserving capital and maintaining liquidity.
Keith: You’re welcome, Faith. They can be a useful component of a diversified investment portfolio, especially for meeting short term financial needs.
