Investing History

Stocks have historically outperformed all other investments. The have been known to have an annual 10.46 percent gain. The next best performing asset class is bonds. On average 5.08 percent gain annually.

Risky investments can pay more than the safe ones at a cost- the risk of failure.
Over the short term, stock prices can fluctuate based on everything from interest rates to investor sentiment. But over the long term, what matters are earnings.

Rising interest rates can be bad for bonds. Past history has shown that when
interest rates go up, bond prices fall. Probably because investors know that the fixed interest on a new bond will pay more because rates in general have gone up.

When interest rates fall, bond prices go up and long-term bonds get hit harder than short-term bonds.




U.S. Treasury bonds can be close to a sure thing for investors.
The U.S. Government will probably never default on its bonds.


Diversifying is one of the smartest things that an investor can do. Diversifying lessens your risk and is best for the conservative investor.

10. Index mutual funds often outperform actively managed funds.