Grey Wave

AAA

DEFINITION of 'Grey Wave'

An investment or company thought to be profitable in the long-term or very long-term. The investor should not plan for an immediate or even short-term positive return, but rather only when s/he is much older and has grey hair.

INVESTOPEDIA EXPLAINS 'Grey Wave'

Grey wave is related to one of the most critical investing concepts - time horizon. Before making investment decisions an investor needs to take into careful consideration when s/he will need to either withdraw the principal or begin drawing down on the dividends and return. The longer the time horizon the more room an investor has for potential mistakes, to adjust to market swings and to benefit from compounding interest.

RELATED TERMS
  1. Compound Interest

    Interest calculated on the initial principal and also on the ...
  2. Investment Horizon

    The total length of time that an investor expects to hold a security ...
  3. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  4. Profit

    A financial benefit that is realized when the amount of revenue ...
  5. Buy And Hold

    A passive investment strategy in which an investor buys stocks ...
  6. Time Horizon

    The length of time over which an investment is made or held before ...
Related Articles
  1. The Seasons Of An Investor's Life
    Investing Basics

    The Seasons Of An Investor's Life

  2. Stocks: Who Needs Them?! (You, If You ...
    Savings

    Stocks: Who Needs Them?! (You, If You ...

  3. Asset Allocation: The First Step Toward ...
    Investing Basics

    Asset Allocation: The First Step Toward ...

  4. Tailoring Your Investment Plan
    Options & Futures

    Tailoring Your Investment Plan

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center