Bonds or stocks?

[Henrywrites]

For the benefit of doubt, it is imperative to understand the difference between stocks and bonds. With stocks, you are sure of making profits once there is an appreciation in the price of the stocks that you bought. However, bonds have fixed interest and it doesn't change no matter what happens in the company. Which one will you go for?

[Ravenfreak]

The price of the stock you invest in can increase, though of course they can also decrease in value too. I think I would invest in bonds over stock, because I'll at least get a concrete price on how much that bond is worth and wouldn't have to worry about losing money over it.

[Debashis]

It depends on your investment goals and risk tolerance. Stocks have the potential for higher returns but also come with greater risk and volatility. Bonds, on the other hand, offer more stability and consistent income through fixed interest payments. Ultimately, the decision should be based on your personal financial situation and investment objectives. Personally, I would build a portfolio using both of them to have a proper balance between equity and debt. This would help me in keeping my portfolio stable during moments when the market turns volatile.

[Henrywrites]

The price of the stock you invest in can increase, though of course they can also decrease in value too. I think I would invest in bonds over stock, because I'll at least get a concrete price on how much that bond is worth and wouldn't have to worry about losing money over it.

If you want to have better peace of mind, investing in hands is the better option. One can argue that going for stocks can provide a good ground for those looking at taking more risks,  but if you are someone that is careful with taking risk, then you shouldn't go with getting stocks.

[riberet19]

I think this depends largely on your risk tolerance, people who will be a little more risk-averse will choose stocks while more conservative people will choose bonds, in my case I have never invested in bonds and I prefer stocks in which I have money invested.

[Henrywrites]

I think this depends largely on your risk tolerance, people who will be a little more risk-averse will choose stocks while more conservative people will choose bonds, in my case I have never invested in bonds and I prefer stocks in which I have money invested.

This is true to a great extent. One needs to watch what type of risk they can take before deciding to invest. If you are the type that can tolerate a high level of risk, then going for the stocks instead of bonds. I invest in both depending on what the situation is like at that particular moment.

[Maria]

Bonds offer relatively stable, fixed-income returns and are considered safer but provide lower potential for growth. They are suitable for conservative investors seeking capital preservation. In contrast, stocks represent ownership in companies and offer higher potential returns with greater volatility. Ideal for long-term growth, stocks are suited to those with a higher risk tolerance. A balanced portfolio often combines both assets, providing a mix of steady income and growth potential. The decision hinges on individual financial objectives and risk preferences, often requiring a diversified approach