Investments

Asked by Anonymous

Updated on 18 Apr 2019

Comparing between stocks which has ups and downs, versus slow growing but constant dividend payout like bonds?

The up and down end up may not guarantee much profits. Dont know how long to hold to see significantly profits (if buy and hold) Bond's return may be low like SSB but at least u can see the interest coming in constantly. What do u all think?

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Good Day Every Day
Good Day Every Day,
Level 6. Master
Answered on 30 Nov 2018

It really depends on your age and your risk profile (aggressive or conservative). If you are a young adult and are more aggressive, go for more stocks that would generate higher but less stable returns in the long run. If you are an elderly who has reached retirement and are more conservative, go for more bonds that would generate lower but more stable returns in the short term. Just my humble opinion.

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Yixiong Chang
Yixiong Chang,
Level 5. Genius
Updated on 29 Nov 2018

They are totally different beast. We can't compare apples to oranges. Bonds can be even more exotic than stocks; Some stocks can be as steady as most bonds. Bonds doesnt mean is safe, stocks doesnt mean is risky. It just depends what u are looking at, what u are looking for, and what are they for.

The question should be about your risk profile, what do u understand, and what u are comfortable with.

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Yong Kah Hwee
Yong Kah Hwee,
Level 6. Master
Answered on 29 Nov 2018

Diversify. Dont put all your eggs in one basket.

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Dwivid Sharma
Dwivid Sharma,
Level 3. Wonderkid
Answered on 29 Nov 2018

Yes, bond return are slow but they are more secure and low risky as compared to stocks. I prefer stocks for invest until fundamentals for the companies do not change.

I believe that stocks investment is safe until it change the direction according to estimates. I prefer stocks investment because they don't bound me for a time period.

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Lok Yang Teng
Lok Yang Teng,
Level 6. Master
Answered on 29 Nov 2018

That's one reason why people diversify. Bonds like SSB ensure your principal is kept with the addition of a small bonus. Some stocks on the other hand (over the counter stocks, usually small-mid cap) are more risky and principal may not be preserved. These stocks are more volatile and has the highest potential to grow -- potentially higher than SSB. So you'll need to balance things out and not keep all your eggs in one basket.

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