A lot of people debate about which is a better investment, bonds or stocks. There are a lot of people on both ends of this argument, but lets first discuss why bonds are even up here in the notch with stocks. Now, as you know, bonds are a little bit safer than stocks (at least, that is what most people think). Stocks can go up and down with the market and with the value of the company, but bonds pretty much stay the same as long as the company you have the bond with is in a good financial situation. But what a lot of people fail to realize is that the stock market can actually be as sure – if not more sure, than bonds. Why do I say this? Well, here is my take on it.
You see, if you spread your investment money around to different companies that are all shaky and have no sound plans for the future, then you are really taking a risk. But if you choose companies that are well established, can be trusted to stay in business, and that have good, solid projections for the future, why not go with stocks? The reason why a lot of people are attracted to high-risk companies and stocks is because they pay more if they make it… but when they don’t, you can end up losing a lot of money.