Finding individual stocks & bonds. There are thousands of individual investments you could choose. Here are some ways to narrow your options down. Because different industries have different prospects for growth, this indicator is mainly useful when comparing companies within the same industry. Pros and cons of stocks and bonds | American Funds Bonds tend to rise and fall less dramatically than stocks, which means their prices may fluctuate less. Certain bonds can provide a level of income stability. Some bonds, such as U.S. Treasuries, can provide both stability and liquidity. Cons. Historically, bonds have provided lower long-term returns than stocks.