The difference between stocks and bonds
Inflation risk is also a concern for bond investors, as rising inflation can erode the purchasing power of fixed interest payments. If the rate of inflation surpasses the bond’s yield, the real return on investment can be negative, making it crucial for investors to consider inflation expectations when investing in bonds. Unlike stocks, which represent ownership in a company, bonds represent a creditor relationship. Are Bonds Safe During a Recession or Market Crash? In this guide, we’ll explore the key types of bonds and how they can help you meet your financial goals. If you’re looking to protect your savings…
