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Investing Fundamentals: Where to put your money? Essay

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Chapter 13 discussion - Investing Fundamentals
Where to put your money?
This chapter discusses diversification, asset allocation, rate of return, and risk vs. reward. Answer the following questions using these terms as a starting point for your discussion.
1. Which single type of the following investment options is right for you: stocks, bonds, mutual funds, precious metals, or foreign investment?
2. What factors did you use to determine your answer to #1? Remember that a short sentence or two, or that copying information directly from the Internet, is not satisfactory.
Answer all of these questions. Number each of your answers and DO NOT repeat the question text in your answers. Submit all answers in a paragraph. No plagiarism is accepted.

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Investing fundamentals
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Q.1 The single type of investment option appropriate for me is government bonds. A bond is a loan; an investor gives to a company, government, or organization for a period that lasts anywhere from one year to thirty years. As an investor in bonds, I would choose to invest in government bonds and get fixed-income security. Investing in government bonds guarantees me an interest in the borrowed money, and I get the principal investment back. Government bonds are an attractive investment option as they assure one of a return on investment because it is backed by the government’s credit ability. Also, by investing with government bonds, I have the oppo...
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