CURRICULAR RESPONSE
What distinguishes stocks and bonds from each other? The primary distinction between stocks and bonds is that stocks offer you a portion of a corporation’s ownership, whereas bonds are a debt you make to a business or the government.
Although you might anticipate a smaller return on your investment, bonds are safer for a reason. Stocks, on the other hand, frequently mix some short-term uncertainty with the possibility of a higher return on your investment.
RISKS
The higher the risk of something the bigger the return, but there is a fine line between risky and stupid and you should not pass that line.
Portfolio diversification
Continue to invest for the long term.
Seek guidance.
Examine the history and performance of the company.
Establish Your Tolerance for Risk. …
Regularly check your investments.
BALANCE
In an effort to balance risk and reward, a balanced investing strategy incorporates many asset types into a portfolio. Stocks and bonds are often split evenly or with a small tilt, such as 60% in stocks and 40% in bonds, in balanced portfolios.
Rebalancing is the process of bringing the asset allocation values of a portfolio back to the levels specified by an investment strategy. These levels are meant to correspond to an investor’s appetite for risk and potential rewards.
CORE COMPETENCY SELF ASSESSMENT
I used not only the information that was shown in our class, but I also used information that I sourced from outside sources.
Yes investing has become more approachable and I now consider doing so in the future.
One thing that I learned that I learned and changed my mind about is overall investing because I thought that investing was only for the lucky or the rich, now I realize that investing is more about smarts and critical thinking.