One way of taking some control over risk is to invest for longer. This allows your
investment more time to grow, which should make up for the effects of any short-term
Our research shows that the longer you stay you invested, the greater the chance
you will make money. We analyzed the performance of the Saudi stock market (represented
by the TASI All-Share Index) and the international stock market (represented by
the MSCI World Index) over the last 20 years, looking at the different outcomes
for investors holding funds for one year, five years and ten years. We considered
every period of these lengths, starting in successive weeks. So in the case of the
ten-year view, we had 522 possible ten-year periods to examine.
The results show that if an investment was held for just one year, there was a risk
it could decline in value. In contrast, over the last 20 years a portfolio investing
in the Saudi or international market that was held for ten years would never have
made an overall loss.