MFS co-CEO: It's about time we address the investment horizon dilemma

Investors have become too short-sighted

If people put money away for long-term goals rather than near-term expenses, why are their investment decisions so short-sighted? Over the past 30 years, we have seen investment time horizons become shorter and shorter, writes Michael Roberge, MFS Investment Management's co-CEO and CIO.

A parent with 15 years to save for college might actually change investments after three years - less time than it takes for their child to earn a degree. The sponsors in charge of overseeing retirement plans, with investment horizons that are measured in decades, are making decisions based on track records as short as one year. There is a dangerous disconnect between distance to the goal and investor behaviour. It's about time we address the investment horizon dilemma. That is far more pressing than what I often get asked about: the active/passive debate. Like growth and value strate...