Make to stock (MTS) is a manufacturing strategy where products are produced in advance and held in inventory to meet anticipated demand. In the context of investment, MTS refers to a strategy where an investor buys or sells securities without a specific demand or need for them, but rather holds them in anticipation of future market demand.
In MTS investing, investors may buy or sell securities in advance of anticipated demand, based on market analysis and predictions. This strategy can allow investors to take advantage of market trends and fluctuations by buying securities when they are undervalued and selling them when they are overvalued.
MTS investing is often used by investors who are focused on short-term gains or who prefer a more active approach to investing. By buying and selling securities based on market predictions, MTS investors can potentially generate higher returns than more passive investment strategies.
However, MTS investing also has some drawbacks. Holding securities in inventory can tie up capital and increase the risk of losses if market conditions change unexpectedly. Additionally, MTS investors may be subject to more volatility and risk than those who take a more patient, long-term approach to investing.
Overall, MTS investing can be a useful strategy for investors who are willing to take an active and risk-managed approach to investing. By buying and selling securities based on market predictions, MTS investors can potentially generate higher returns than more passive investment strategies. However, this approach requires careful market analysis and management to minimize risks and maximize returns.