Should I invest in bonds or stocks?

Should I invest in bonds or stocks?

It depends on your financial goals and risk tolerance. Stocks generally offer higher returns but come with more risk, while bonds are typically safer but provide lower returns.

What are the main differences between bonds and stocks?

Bonds are loans to companies or governments that pay interest, while stocks represent ownership in a company. Stocks can appreciate in value, but bonds provide fixed income.

Which is better for long-term investment?

Stocks are often considered better for long-term growth due to their potential for higher returns, but a balanced portfolio with both can reduce risk.

What risks should I consider with stocks?

Stock risks include market volatility, economic downturns, and company performance. It's important to diversify your investments to mitigate these risks.

Can I lose money in bonds?

Yes, while bonds are generally safer, you can still lose money if interest rates rise or if the issuer defaults.