You can take your investment strategizing another level deeper with the analysis tool. This visualization takes your stocks and bonds and breaks them down into nine different categories based on factors like quality and growth potential. These categories are displayed as an easy-to-read grid so you can get a quick and accurate read on what kinds of investments you have.
In order to use the analysis tool properly, it’s important to understand the basic differences between stocks and bonds.
Stocks range in terms of their risk, but they are, in general, considered to be more risky than bonds. However, you shouldn’t forget that in the long run, a diversified portfolio of stocks is very likely to increase in value, which is why they are among the most important investments.
Bonds are generally considered to be safer than stocks because of their long-term nature, but they may not bring in the same high returns. Bonds are generally predictable and steady. Because they return a specified interest, they are often referred to as “fixed-income” investments. Though there is always a small chance that a bankruptcy or default will happen, this is unlikely, especially with high-quality, long-duration bonds.