Taming Volatility: Downside Protection Indexes

The stock market, as represented by the S&P 500 Index (“S&P 500”), has just experienced a historic 6-year bull market. But, many investors did not participate in much of this appreciation. The Great Recession of 2008 caused many investors to significantly reduce their market exposure, and many advisors were unable to find thoughtful solutions for their clients to safely participate in the market; thereby creating a void that investment firms sought to fill with new protective strategies. Now, the strong rally of 2013 and 2014 highlighted some of the inefficiencies of today’s new protective strategies, leaving both investors and advisors wondering how to allocate their investments.

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