Fri, Sep 15th 2000 1:49pm

Talking About Risk

Note: A CRLF will be replaced by a break tag (&lt;br&gt;), all other allowable HTML will remain intact
Allowed HTML Tags: &lt;b&gt; &lt;i&gt; &lt;a&gt; &lt;em&gt; &lt;br&gt; &lt;strong&gt; &lt;blockquote&gt; &lt;hr&gt; &lt;tt&gt;

I found it pretty interesting that what most of us may view as safe options for investments, bonds may not be as safe or as good an investment. An interesting historical study done on returns from stocks and bonds revealed that the overall return of stocks outweighed the measly returns of bonds. Putting it in another way, stocks over all seemed just as risky as bonds but the plus point was that they also took part in the potential upside (which bonds didn�t). Seems to me like good insight for the new economy.

If you liked this post, you may also be interested in...

(Flattened / Threaded)

No Subject Given
unknown (sort of), Sep 15th, 2000 @ 4:19pm

nice view on "risk." what's important to remember is that bonds are also used for capital preservation and income strategy, as you expect to get your principal+interest payments on a regular basis, not at the end of the term. maybe what's more important to note is that some people cannot deal with the volatility of say, a MSFT stock and would rather deal with its corporate bond because the chances of default are very slim, whereas for a long time you might have to deal with a dip in stock price (like it's doing today) regardless. i don't play around with bonds anyway.
[ reply to this | link to this | view in thread ]
Re: No Subject Given
sort of recognising "unknown sort of", Sep 18th, 2000 @ 4:29am

I guess most people prefer packaged risk, even though the smart money's usually on the oppisite.
[ reply to this | link to this | view in thread ]

Have a Techdirt Account? Sign in now. Want one? Register here
Name
Email	Get Techdirt’s Daily Email
URL
Subject
Comment	this is for spambots, do not use this
Options	Save me a cookie

Have a Techdirt Account? Sign in now. Want one? Register here
Name
Email	Get Techdirt’s Daily Email
URL
Subject
Comment	this is for spambots, do not use this
Options	Save me a cookie

Top Posts - PostRank