Debt (bonds) and equities (stocks) are fundamentally different beasts. For one thing, the dividends that are paid by common stocks can be changed. The interest payments of bonds are set for the life of the bond and can only be changed by bankruptcy. Bonds are inherently safer. Common stockholders get paid last in the event of bankruptcy; bondholders have prior claim to the assets under liquidation. (Think of prefered stock as a sort of hybrid of a stock and a bond.) If you want to gamble on future earnings, buy stocks. If you want to invest for safety and income, go with bonds. The shorter the maturity of a bond the more stable the price. If you're looking for relatively stable price and income, the Vanguard Short Term Investment Grade Bond Fund is an excellent choice, especially in this crazy market.