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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.
What else can I help you with?
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
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.
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.
Difference between stocks and bonds?
stocks are stocks and bonds are bonds . flatout -ashes
Do corporations issue stocks and bonds?
They do in fact issue stocks and bonds.
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
Why buys bonds and not stocks?
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.
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
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.
what is the difference between sale of bond and stock raising fund in firm point of view and investor?
The main difference between stocks and bonds is that stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government.
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.
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
Difference between stocks and bonds?
stocks are stocks and bonds are bonds . flatout -ashes
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.
Do corporations issue stocks and bonds?
They do in fact issue stocks and bonds.
