Talking About Risk

from the risk-takers-in-history dept

I found it pretty interesting that what most of us may view as safe options for investments, bonds may not be as safe or as good an investment. An interesting historical study done on returns from stocks and bonds revealed that the overall return of stocks outweighed the measly returns of bonds. Putting it in another way, stocks over all seemed just as risky as bonds but the plus point was that they also took part in the potential upside (which bonds didn’t). Seems to me like good insight for the new economy.
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team


Reader Comments

Subscribe: RSS

View by: Time | Thread


  • identicon
    unknown (sort of), 15 Sep 2000 @ 4:19pm

    No Subject Given

    nice view on "risk." what's important to remember is that bonds are also used for capital preservation and income strategy, as you expect to get your principal+interest payments on a regular basis, not at the end of the term. maybe what's more important to note is that some people cannot deal with the volatility of say, a MSFT stock and would rather deal with its corporate bond because the chances of default are very slim, whereas for a long time you might have to deal with a dip in stock price (like it's doing today) regardless. i don't play around with bonds anyway.

    link to this | view in chronology ]

    • identicon
      sort of recognising "unknown sort of", 18 Sep 2000 @ 4:29am

      Re: No Subject Given

      I guess most people prefer packaged risk, even though the smart money's usually on the oppisite.

      link to this | view in chronology ]


Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.