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.