How Do You Protect Against Market Drops?


In Episode 9 of The Informed Investor podcast: Dimensional’s Mark Gochnour, Wes Crill, and Jake DeKinder analyze the allure of buffered strategies as well as the risks and costs of seeking downside protection.


KEY TAKEAWAYS
  • Minimizing downside risk comes with costs.
  • For any investment, consider the goal, expected return, risk, and cost.
  • Weigh how an investment fits into your overall portfolio.
  • Fixed income may serve as a natural buffer in a stock portfolio.