What is the advantagess of buying stock versus bonds? What is an easy way to diversify your risk?
February 19th, 2009 | by bonds |
svpasamba asked:
As an investor, what do you see as the advantages of buying stock versus bonds? What is an easy way to diversify your risk?
JAROD
As an investor, what do you see as the advantages of buying stock versus bonds? What is an easy way to diversify your risk?
JAROD
One Response to “What is the advantagess of buying stock versus bonds? What is an easy way to diversify your risk?”
By librarianb on Feb 20, 2009 | Reply
LUIGI
Over the long run, stocks give a greater return than in bonds. However, government bonds are virtually fail proof, but the return isn’t as huge as stocks (in the long run). Some municipal bonds, also give a tax break when it comes to filing taxes. When it comes to investing money, you should split your money between stocks and bonds, depending on your financial situation, how long you have to invest, how much money you want to end up with and what you intend to do with your money. Also, you don’t want to invest your money in any one industry. Spread your money across industries.