But stocks also rise in value more than bonds over time.
Certain assets tend to be more volatile—meaning they’re more likely to rise or fall suddenly—than others. For instance, stocks are more volatile and thus riskier than bonds because stock prices rise and fall more frequently than bond prices. But stocks also rise in value more than bonds over time. This is the risk-return trade-off in investing: the more risk you take, the greater your potential long-term return.