Mid Term Note (MTN) Strategies

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Mid Term Note (MTN) Strategies

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A mid term note (MTN) investment strategy aims to buy assets, without the intention of staying beyond a medium or long term of time. – PowerPoint PPT presentation

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Title: Mid Term Note (MTN) Strategies


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Mid Term Note (MTN) Strategies
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  • An investment strategy is to find a way to buy
    shares that are profitable to incorporate them
    into our stock portfolio.
  • Specifically, a mid term note (MTN) investment
    strategy aims to buy assets, without the
    intention of staying beyond a medium or long term
    of time. Obviously, a medium-term strategy for a
    trader can be a couple of days, while for an
    investor it can be a period of more than a year.
    In this article, we are going to consider the
    medium term as several months that can last up to
    a year.
  • How to invest in the stock market in the medium
    term?
  • The economy plays a fundamental role in the
    evolution of the stock market, therefore, the
    macro knowledge of the context where companies
    move must be analyzed accurately, so that they
    help us to know if a company is making profits or
    if it has economic problems.

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  • This technical knowledge to invest in the stock
    market in the medium term provides us with the
    timing of the market, that is, the ideal moment
    to enter or exit a position.
  • With medium-term trading, we buy undervalued
    securities to be sold when they are overvalued.
    This medium-term investment requires high
    knowledge since decision-making is not enough,
    but the different alternatives will have to be
    evaluated regularly and decide whether they
    continue to be maintained or sold to become
    liquid.
  • Mid Term Note (MTN) Strategies
  • The strategies to follow for medium-term
    investment depend on the investors preferences
    since there is a wide range of investment
    combinations.

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  • If you are a lover of equities, you should choose
    the sectors very well, this sectoral strategy
    works very well in the economic cycle since there
    are always sectors that are better off than
    others.
  • For these investments, you have to have great
    agility to obtain liquidity and thus rotate from
    one sector to another.
  • If, on the other hand, you prefer fixed income,
    you should bear in mind that this investment is
    exposed to many inflationary periods that can be
    a bad investment in the long term, while in
    medium term note (MTN) periods it could be a good
    tool to incorporate into our stock portfolio.
  • Some major investors advise having a stock
    portfolio that is made up of between 25 and 75
    fixed income stocks.
  • What assets can we look for to invest in the
    medium term note (MTN)?

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  • Mutual funds are a good option for medium term
    note (MTN), whether mixed fixed income or
    variable income.
  • The most important thing is to select the
    investment fund that suits the investors risk
    profile.
  • There are other investment products that are
    appropriate for mid term note (MTN), such as CFD
    s, cash shares, ETF s, financial options, etc.,
    each one has its own characteristics, therefore,
    it is advisable to know their advantages and
    disadvantages to adapt them to our needs.
  • For example, if we have an investor who has
    little capital and wants short trades over time,
    it is advisable to look for a broker to carry out
    stock operations with CFDs.

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