Q) Equity yield more return than investing in bonds ?

Question

Q) Equity yield more return than investing in bonds ?

Answer 1

It depends. Most bonds carry less risk and thus, you will get a lower return when investing. Over the past years, equity markets on average are substantially out performed the returns available on bonds.

It should be remembered that investing in equity markets exposes you to the risk that you could lose everything. With that in mind, you could also substantially out perform the bond market if you invest smartly.

Answer 2

Currently, there are four factors against investing in bonds 1) inflation, 2) the fed policy of giving money away for nothing, 3) tax treatment of interest income, 4) credit risk of a collapsing economy.  

On the other hand there are a couple of factors against investing in stocks.  1) inflation 2) collapsing economy.  

Seems like the maybe currently the factors might favor stocks over bonds but neither are what one would call a slamp dunk.  Probably a nice safe money market account is a better bet currently even though inflation is eating it alive.