Question

Would you prefer to invest in bonds or stocks? Give reasoning to support your choice.

Answer 1

I am a highly aggressive investor. i would like to invest in stocks rather than bonds because-

A. Stocks will generally have a better potential of returning a higher rate of return on the overall investment because these stocks can multiply over a long period of time.

B. Stocks would also have a potential of various kinds of Technical Analysis and fundamental analysis associated with them so that one can make a higher rate of return.

C. Stocks will also have higher amount of dividend than interest with generally paid on the bonds.

D. Stocks will be representing the ownership rights and these stocks will be helpful in voting at the general meetings of the company.

E. Stocks will also be a better option when it comes to the purchase of the shares of the company.

F .I would always be trying to invest into stocks because I would be trying to match my risk appetite with the return potential