Stocks Vs Bonds: Should You Put Your Money Into Stocks Or Bonds?
So what is the difference between stocks vs. bonds? People today are interested to know what the better method of investing is. Trust be told, many believe that bonds are better because they are a safer investment, as you are virtually assured of achieving a positive return on your investment.
Here is a brief explanation of a bond. The company you hold a bond in has issued you a bond in exchange for your money over a certain time. When the time is up, they will pay the loan back to you with interest. Therefore, as long as the company is financially stable, you can be almost certainly to make that money back.
A stock, on the other hand, is not guaranteed and fluctuates all the time. Therefore, most people believe (in some cases rightfully so) that a bond is a better investment because they are less volatile.
However, heres something very few investors are aware of: when done right, stock investing can actually be just as guaranteed of giving you a positive return on your investment as a bond, and maybe even more so.
You see, when you focus your investing on companies that have...