I want your opinion on stocks and bonds?

Question

Which one would you invest in? and why?

Which one is better in your opinion?

i want to become an investor so im going to be doing this for a long time and doing to be investing in both but want to know which one would be best to spend my most time on?

Answer 1

Stocks are usually your best option long-term because even if you have a year or two on a down market, historically stocks have much better yields (10%) than bonds (5%).

Having said that, when the market is volatile, like it is now, investors shift to bonds because their prices tend to fluctuate less. They give you a stable return, say 5% or so. Not great, but not bad either. You are usually guaranteed a return if the bond is Federal, but some bonds, such as municipal bonds and especially so-called "junk" bonds can theoretically go in default. Moody's rates bonds. Some bonds also give you tax incentives; for example, some are locally tax-exempt, so that should also figure into the overall yield.

If you are in your 30s-40s, I'd say put most of your money into stocks and mutual funds and about 30% or less in bonds. If you are older, put more in bonds to lower risk.

Answer 2

If you have a long term time horizon stocks are the better bet as they provide significantly better returns on average over the long haul. Indeed academic economists have spent years wondering why stocks perform so much better than bonds.

Bonds are safer, less volatile and a better option if you're investing money you'll need in less than 5 years (say for college, a common occurence on this board.)

Answer 3

Both can be risky. So you should research and determine what level of risk you want. You can have bonds that have a great deal of risk and stocks that offer a solid dividend with little risk and you can have the exact opposite too.

Answer 4

This must depends, you should have both, but put more on the equity and a ratio of 4 : 1, out of 5 funds. if u r a risk taker, it is gd to take funds that has risk factor of 7-9. you will sure make $$.

Answer 5

Both. They are different asset classes and provide diversification. The shorter your time horizon becomes, the more of your portfolio should be in bonds. The percentage of bonds in your portfolio should approximate your age.

Answer 6

Stocks ,
I 've had better dividends than the bonds would return and ,
On average , my year over year growth is better .

In total the stocks + dividends are averaging 15% growth per year .

>