The article discusses the traditional views surrounding investments in stocks and bonds, emphasizing that stocks are often pursued for wealth growth while bonds are seen as a safer option for preserving wealth. Younger investors typically favor stocks due to their growth potential, but bonds represent a significant market, valued at $128 trillion compared to stocks at $109 trillion. Despite stereotypes that associate bonds with older investors, individuals of all ages can benefit from including bonds in their portfolios to manage risk and achieve a sense of stability during market volatility.
Bonds are viewed more for preserving wealth than growing it, making them generally less attractive to younger investors seeking to build wealth.
Bonds are, in essence, IOUs from the issuer, whether it be a sovereign government, a municipality, or a corporate entity, reflecting a measured risk.
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