Money or Bond?

Discussion in 'Financial Futures' started by toni84syd, May 17, 2007.

  1. toni84syd


    Both of the money and bond have advantages and disadvantages. But it is quite sure that these two terms are a
    good way to keeping the wealth.

    the money have advantages of:

    1. Liquidity
    2. No possible Capital loss

    and disadvantages of:

    1. low rate of interest return
    2. affected by inflation

    where as the bond have advantages of:

    1. interest income
    2. probability of capital gain (increasing monetary value)

    and have also disadvantages of

    1. loss of immediate liquidity
    2. probability of capital loss (decreasing money value)

    Rational people would hold both of these money and bond to keep their wealth and manage it wisely.

    However, the proportion between the money and bond holding will be vary to individual to individual.

    What will be a recommendable proportion that you think?:confused: