Stocks Compared to Bonds

For many people stock and bonds like head and tail, up or down, or silver and gold all they know. If you want to be an investor, it's not a good thing. They are two different animals, with priority over two different types of investors.

Smart investors invest in both, plus alternative investments such as real estate and hard assets. Let us get the real basic about the famous, but not any means of the same twins … stock and bonds … stock with long term debt.

Shares (stock) represent the ownership of a company. In the long run, investors only have to buy a basket of stocks and hold each year, and there will be a 10% return. People who have the wrong people have a lot of risk, especially if you have them at the wrong time. When the economy deteriorates and the stock market falls, if you hold a variety of stocks, then they will lose the stock.