Stocks vs. Bonds: Differences in Risk and Return Make a Case for Both
Stocks and bonds differ in many aspects, including the risk and return investors can expect. Because of these differences, stocks and bonds accomplish different things
Category: Managing Risk
Risk management is a key component of any investment strategy. It helps investors protect their assets by aiming to reduce market risk though diversification, allocation between stocks and bonds, and other financial planning measures. By managing risks effectively, investors can help protect their portfolio against diversifiable risks and increase the likelihood of achieving long-term goals.
The risk of loss is inherent in investing: market volatility, changes in economic conditions, and geopolitical events are always there. It’s not possible to protect against all types of investment risk, but proper risk management seeks to mitigate risks than can be managed, such as company-specific risk.
Diversification of investments across different asset classes, sectors, and geographies, portfolio rebalancing, and an ongoing discussion about investment risk profile are some ways we seek to minimize investment risk.
If You Own Too Much Stock In One Company, It’s a Good Time To Consider Diversifying
Can you own too much of your employer’s stock? Undoubtedly, yes. Does holding a lot of company stock create the potential for a large windfall?
Can You Plan For A Stock Market Crash?
Could you have planned for this? Investors of all ages are thinking it: could I have done anything to protect my investments from the swift
Stress Testing a Financial Plan Using a Risk Simulation
What happens if…? That’s the million-dollar question. Stress testing a financial plan and retirement projections can help investors feel more confident in the likelihood they
What Happens to the Stock Market After a Recession?
One of the most pressing questions for investors right now is where does the stock market go from here? A recovery following the global downturn
Should You Rebalance Your Investments When the Market is Up or Down?
Whether the market is setting new highs or in the midst of a downturn, investors need to think a few steps ahead to ensure they’re
Don’t Get Taken Down When Your Employer’s Stock Sinks
What can happen if you own too much of your company’s stock? The coronavirus outbreak is yet another example of the dangers of having too
Should You Keep Investing Through a Recession?
There’s a lot we know about the current state of the stock market, but we can only make an educated guess as to where the
The U.S. is in a Bear Market. There Could be a Recession. But This Isn’t 2008.
Are We Headed For Another Financial Crisis? It happened on March 11th: after 11 years, the S&P 500 once again entered a bear market. Defined
Should You Go To Cash Until The Market Recovers Or Ride It Out?
When the stock market is in turmoil, many investors are tempted to go to cash and wait for the dust to settle before getting back