Stocks Are a Risky Investment

• According to the investing educational website, GreekShares.com, the stock market's unpredictability has caused it to be considered a fairly risky investment. As a result, if you are nearing retirement or have a low tolerance for risk, then it is wise to avoid the stock market. In general, financial advisors suggest switching from a stock-heavy portfolio to a bond-heavy portfolio as you near retirement in order to protect your earnings.
  
  

Stocks Earn a Greater Return

• Historically, stocks have provided the greatest return of any typical investment security. According to Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, over a long period of time, stocks significantly outperform all other assets. Consequently, in order to maximize the potential return on your investment, you should keep your money in the stock market.
  
  

Bottom Line

• While stocks may be considered a risk investment, they also provide the greatest return. As a result, unless you are nearing retirement and cannot afford to have any risky investments, you should hold your money in the stock market.