1

vote

322 views

What's the safer investment - Stocks or Bonds?

Is it safer to invest in stocks or bonds?nbsp;

Where can I get more information about this?

asked 2 years ago

scott

645 points



4 answers



2

votes

On the surface I would say bonds appear a safer bet than stocks. It really depnds on how you look at it - the key things to think about are what you are investing for and for what kind of time frame. Essentially,  how big is the risk.

If you are looking at a twenty year investment period, a diversified stock portflio will bring better returns than bonds. With stocks the risk is really in the short term - when investing in stocks you don't want to be depending on cashing in that investment in just a few years. You really need to be able to let it sit & ride out any troughs in the market. Short term stocks can be very volatile.

With bonds there is minimal risk in you actually losing money. The flip side of that is the low return - money is made on interest rather than increase in equity.

If you are looking at investing some capital, I would focus on what your goal is. This will help you to identify which method best suits your needs at this time.

There is a heap of information online.

This site may interest you.

http://www.investopedia.com/university/stocks/

 

added 2 years ago

schmeidi

641 points

0

votes

bonds and shares are different in various ways. bonds are like fixed deposites that will get less benefits but it is more safe comparing to shares. shares are faster but the risk is very high. so we need to monitor all the time and we need to invest in the most reliable ones whos market values remains almost stable even when the stocks come down.

added 2 years ago

ashiqkm

72 points

0

votes

Bond n share. it depend on the risk factor that the person can accept.

if you plan to play save bond is  the best choice. it like a saving or fix deposit. But the revenue will be low and risk factor will be at minimum to no, unless the bank is winding up. This is good for those have less capital and cant tolerant to risk.

share is fluctuate and changes every minute. it can be very high at 1 time and fall tho 0 in the other. The return of the share of cause will b very impressive. If you have the extra money share is a good choice to you but u should know the risk is there.

at the end before u would invest into the share market u need to seek advise from a professional investment firm before really put in money to invest.

added 2 years ago

OrsoY

20 points

0

votes

Of course it would be bonds. It's a fixed income investment and you dont worry very much because of the volatility of the market.

added 2 years ago

stephen.sy2008

15 points



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