In these lean times, cutbacks, scarcity of funding, and the need to streamline are symptoms of a tough environment. However, many of these management practices should really be occurring in both good times and bad. In portfolio management, especially, it is important to manage a healthy balance between short term and long term considerations.
Whether a company operates in a good or bad economic environment, a healthy balance between short and long term goals should always be in place. In the present time, for instance, given that we are experiencing a rather tough few years, portfolio management methods must include both short and long considerations; that is, short goals that are relatively aggressive and specific and long goals that are, more or less, consistent.
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Distinguishing Between Long And Short Term Goals
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