Equities seen as a short term investment?

This afternoon, I was taken aback by a friend's remark:

"My agent said that equities is the best for short term investment and that I'll be able to enjoy the maximum returns possible."

That's a BIG misconception ... ... well, I think that may happen only AND only if the market is verrrry bullish. But then, how big is the chance?

And what if you have an urgent need of cash and decides to sell within a year of purchase, when the equities aren't performing? That's a big problem. Isn't it? Which is why equities should never be looked upon as a short term investment.

I shared with her, that for equities, you never know when it's going to rise or fall. As the equities' performance will be largely dependent on market conditions, companies performance, and world events; how is it possible for anyone to know whether the market is going up or down? Anyone can predict. But who knows for sure?

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Personally, I think that even if the individual is a risk-taker, he shouldn't have the perception that equities are suitable as a short term investment, as this may result in unexpected cashflow problems.

Having a portfolio consisting of equities and bonds may be a better idea. Diversification and asset allocation is definitely one of the key to successful investing.