Talking About Risk

from the risk-takers-in-history dept

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.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Talking About Risk”

Subscribe: RSS Leave a comment
unknown (sort of) says:

No Subject Given

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.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...