OK, we’ve got stocks and bonds, and different categories of each. The initial question is why should we invest in these different asset classes? We like a stock, say General Electric, so just buy that stock, collect the dividend, and watch the stock grow, or, since generally stocks have a higher return than bonds, so just buy a stock fund, sit back, and watch your portfolio shoot through the roof, right?
The answer, as is most of the answers concerning investing (and nearly everything else) is “it depends…” Read the rest of this entry »
