Bonds (specifically Government Treasuries). Individual stocks can drop to zero and stay there (think Enron or Lehman Brothers). Sovereign government bonds from stable nations guarantee the return of your principal at maturity, meaning your risk of permanent capital destruction is virtually zero if held to maturity.
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Bonds (specifically Government Treasuries). Individual stocks can drop to zero and stay there (think Enron or Lehman Brothers). Sovereign government bonds from stable nations guarantee the return of your principal at maturity, meaning your risk of permanent capital destruction is virtually zero if held to maturity.