Definition of Stable Investment
What does the term "stable investment" mean? What is meant by the term "stable investment"?
A "stable investment" is an investment that is seen to be lacking excessive volatility.
For instance, an example of a "stable investment" might be owning a bond offering from a AAA-rated sovereign nation, or perhaps owning the common stock of a publicly traded bank in Canada.
It is usually tough to call any investment in a single common stock a "stable investment", as anything could happen to any stock at any given time (look at what happened to big brokers and banks in the United States during the 2008-2009 financial crisis).
However, a bond or income mutual fund (which will own dozens, if not hundreds, of different positions) could be classified as a "stable investment".
Hallmarks of a "stable investment":
-low volatility
-steady gains
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