Financial Focus Donna Schexnayder Edward Jones Investments

Know What to Expect from Your Investments

Do you know what to expect from the stocks and bonds you own? Some people’s expectations get distorted, due to what may be happening with their investments. For example, a couple of years back, many investors saw the value of their bonds rise sharply, causing some to look at these investments as “growth” vehicles. But is that an accurate assessment?

Probably not. Historically, although past performance is not an indication of future results, stocks have returned more than bonds or any other type of asset class. So, if you are seeking long-term growth, you will want to consider high-quality stocks. On the other hand, if you want current income, you’ll want to purchase investment-grade bonds.

Ultimately, by owning a diversified mix of stocks, bonds and other securities, you can go a long way toward meeting your goals for both growth and income. But it always helps to know what to anticipate from all your investments.