From the course: Understanding Capital Markets

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From the course: Understanding Capital Markets

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- [Michael McDonald] Let's recap what we've learned throughout this course. First, most people are better off picking a portfolio allocation that meets their financial return expectations without taking on too much risk. It's usually a bad idea to have all of your savings in either stocks or bonds. Instead, it's frequently a better idea to choose a combination of stocks and bonds that meets your needs. Second, stocks are a crucial tool in the broader economy, and they're a good choice for many investor's portfolios. But be sure that you understand how to value stocks, and the opportunities in the marketplace from international equities and ETF choices. And from options like puts and calls, for instance. Be sure that you're aware of the risks before diving into this space. Third, when you're allocating to a stock portfolio, remember that while stocks overall have returned about 11% per year on average over the last half…

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