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In addition to stocks and bonds, you may hear about other investments, like commodities (like oil or precious metals), foreign exchange, credit, inflation, and real estate.

In your stock portfolio, you will already have exposure to these asset classes. For example, your stocks should include energy companies (commodities exposure), foreign companies (foreign exchange exposure),and, by virtue of owning stocks themselves, some credit exposure.

== New Answer====

As an investment consultant in one of the most successful investment companies in the US, this is a question that I deal with on a daily basis. It is certainly important to consider other investments in addition to stocks and bonds, however that does not necesarily mean that you need to buy them individualy to accomplish that. Simply investing in a diversified mutual fund could allow you to have exposure to stocks, bonds, CD's, REITs, commodities, foreign investments, etc., without the risk and volitility of investing dirctly into these positions directly. This is particularly true with comodities, futures, options, and foreign equities.

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โˆ™ 2011-09-13 13:50:36
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Q: Should an individual investor look at more than stocks and bonds?
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Related questions

Compare and contrast stocks and bonds as investment instruments?

Stocks are investments in individual companies. Bonds are investments in government agencies such as cities and municipalities. Stocks are generally riskier than bonds, but bonds have a lower yield.

Which is better bonds or stocks?

If you are a medium to high risk investor then Stocks are good for you If you are a low to medium risk investor then Bonds are good for It all depends on how much of a risk you can take. By investing in stocks you may make profits but you may incur losses as well. But in case of bonds the profits might be less but they are assured.

Why might an investor choose to buy bonds insteasd of stocks?

Guaranteed return upon maturity

Difference between bonds shares and mutual funds?

The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.

Difference between stocks and bonds?

stocks are stocks and bonds are bonds . flatout -ashes

What are stocks bonds and mutual funds?

stocks= regular investments hand-selected by the investor mutual funds= investments are chosen for the investor by other people bond= a long term investment in which you can only gain money and cannot lose any (bonds usually last 6-10 years

Why buy bonds and not stock?

Bonds and stocks serve different purposes to the investor, and ideally you should buy both. Advantage of investment-grade bonds: the issuer is committed to paying you a stated amount of money on a stated date. The disadvantage is your return is limited to the agreed-on amount. Advantage of stocks: potentially unlimited return on your investment. The disadvantage is there are no guaranteed returns with stocks; you could potentially lose everything you invested in them. Speculative-grade bonds, or "junk bonds," have a risk/reward system more like stocks than investment-grade bonds.

Why do you choose stocks or bonds?

Both stocks and bonds are investment options available for us as an investor. What we choose depends on what we want. If you want high returns and are ready to take high risk - Go for Stocks If you are satisfied with meager returns like 10% or so and are not willing to take any major risks - Go for Bonds

What does the term iShares ETF mean in to an investor?

ETF stands for Electronic Traded Funds. The term iShares ETF refers to stocks and bonds that are traded online, specifically stocks and bonds that are traded on the iShare website. The company called iShares specializes in ETF trades.

Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.

Financial Investor?

form_title=Hire a Financial Investor form_header=Manage your Investments with a financial advisor. What types of invesements would you like?= [] Stocks [] Bonds [] Mutual Funds [] Other Describe what you would like out of a financial investor?=_ Are you currently in any form of debt?= () Yes () No

What is the difference between stocks bonds and shares?

what is the difference between stocks,shares and bonds

What is more risky stocks or bonds?


Which earns interest stocks or bonds?


Will long term debt increase when you issue stocks and bonds?

When a company issues bonds, yes. Stocks, no.

Is portfolio a noun?

Yes, the word 'portfolio' is a noun; a word for a case for carrying papers or drawings; the stocks and bonds held by an investor or a firm; a word for a thing.

What is a value investor?

A somewhat conservate investor who is looking for stable companies for long term appreciation gain. Little risk with smaller but consistant returns. Investing in the top mutual funds, index-funds, and bluechip stocks and bonds has been the typical mix.

What happens to stocks and bonds after the stockholder dies?

They become part of the deceased persons estate If the decedent had a will, the stocks and bonds pass on to the wills beneficiaries If there was no will, the state intestacy laws determine who gets the stocks and bonds

Should you turn over your bonds to stock?

The important difference for investors in regards to bonds and stocks is risk. Stocks are a more risky investment, and as a result they can lead to both bigger gains and bigger losses. On the other hand, bonds are stable investments which consistently pay out. For an investor who might be younger or have greater disposable income or fewer liabilities, a greater percentage of stocks might be a better option. For someone seeking to retire soon, or who is less informed about the stock market and its risks, more bonds might a safer option. In all cases, investments in stock should be made with due consideration and research. A balanced portfolio will include both bonds and stock, but risk is the ultimate deciding factor.

Where can a person go to get tips on stocks and bonds?

Many websites that deal with investments of stocks and bonds will provide tips on them. Websites such as Daily Finance, Stock Twits, and Learn Bonds will give many useful tips for picking the right stocks and bonds.

Which is more liquid stocks bonds?

Stocks are considered much more liquid than bonds. This is because stocks are riskier and the value of the stock is determined by the present market.

Can stocks and bonds be purchased through the financial market?

Stocks and bonds can be purchased via one's bank. There are also companies that offer online trading where one can buy stocks and bonds. These include Hargreaves Lansdown, for example.

What is stock exchange and what is stocks and bonds?

A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.

Why are stocks and bonds sold?

The stocks and bonds are sold by the companies are due appreciation of capital funds to meet the additional requirments of companies.

What are federal stocks and bonds?