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Risk of Stocks vs. Bonds

Crews Bank & Trust Wealth Management Services Jan 13, 2023
The chart shows that in the short term, cash and bonds have the least amount of risk and stock have the highest. However, over the long term, it is exactly the opposite.

Contents

Today’s Chart of the Day comes from @brianferoldi on Twitter who does a great job of making complex things easy to understand.

The chart shows that in the short term, cash and bonds have the least amount of risk and stock have the highest. However, over the long term, it is exactly the opposite.

Why? Not only do cash and bonds offer a lower return, their returns are further eaten away by inflation. Stocks are riskier in the short term, but over the long run offer higher returns for that risk and are inflation proof.
Chart of the Day

About the Author

Crews Bank & Trust Wealth Management Services
Crews Bank & Trust Wealth Management Services

Experienced professionals from our wealth management services team can help you achieve a bright financial future through investment strategies tailored to you. We’ll show you all of the options available and help you choose the ones best suited to you. We’ll provide high-quality, personal service as we work toward your goals together. Our Portfolio Managers do not receive commissions on trades; our recommendations of investments are based solely on your best interests.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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