In general, stocks are riskier than bonds, simply because they offer no guaranteed returns to the investor like bonds do. Trends reveal that bonds typically don’t lose as much value as stocks do when the market falls. However, the low-risk nature of bonds typically produces lower returns on your investment compared to stocks. Stocks generally combine unpredictability in the short-term with the potential for better returns in the long-term. Risk-averse investors that prefer the cushion of structured payout schedules would be better off investing in bonds.