2007-08-11 15:40:28 · 9 answers · asked by ga_peach12006 2 in Business & Finance ➔ Investing
both it is better to spread out investment, and go with municipal bonds when you do.
2007-08-11 15:46:04 · answer #1 · answered by Earth to Mars 5 · 0⤊ 3⤋
Stocks have a higher risk but a higher yield if the company does well. Stock is ownership in the company.
Bonds are a loan to the company, less risk, and a lower yield. Should the company go bankrupt (worse case scenario) stockholders stand little chance of seeing their money while bond holders can expect to see some of their money.
Bonds tend to do better when stocks are not doing well and when stocks are doing well bonds tend to not do as well.
2007-08-11 15:52:04 · answer #2 · answered by azohawk 3 · 1⤊ 1⤋
Bonds are less risky. Also, you don't have to wait for Bonds to mature.
However, from my knowledge, many billionaires invest in stocks. Bonds are great if your just beginning to learn investing, but as you advance I suggest you switch to stocks.
"Entrepreneurs are not afraid of whats around the corner".
2007-08-12 06:22:15 · answer #3 · answered by Anonymous · 1⤊ 0⤋
"Asset Allocation" & "Diversification".......
Stocks and bonds work together in an overall investment plan. Each has a role. Read some books on the subject. Having the right "asset allocation" is more important than picking the "right funds", stocks or bonds over a lifetime of investing.
Become knowlegable and make a plan... You'll do fine!
2007-08-11 15:48:57 · answer #4 · answered by Common Sense 7 · 1⤊ 1⤋
Investing is about making profits, higher profits are better, so choose stocks. Do you see Billionaires like Bezo, Gates and Buffet investing in Bonds? No. Follow the smart money.
2007-08-11 16:10:39 · answer #5 · answered by ? 5 · 0⤊ 1⤋
It's good to have a balance, when stocks are up bond tend to be down and vice versa. Depending on your age and investing style is how you should split them up. Many investors have test and calculators to help you decide. I use Edward Jones and www.vanguard.com
2007-08-11 15:45:28 · answer #6 · answered by the_wayward1 4 · 1⤊ 1⤋
Bonds are better. Stocks are risky.
2007-08-11 15:47:37 · answer #7 · answered by minni 2 · 0⤊ 3⤋
questions like this can not be answer in the short space we have -- way too many pro and cons --- most folks have a mixture of both to offset the loses they may have in either one.
;like asking which is better ice cream or ice tea
2007-08-11 15:47:14 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Depends on what you are looking for. Both are good for different reasons and different circumstances.
Basically...
Stocks have more growth and less income.
Bonds have more income and less growth.
2007-08-11 15:43:49 · answer #9 · answered by wildeyedredhead 5 · 2⤊ 1⤋