Alaric Gordon, chief executive officer of Mercater Capital Management, is concerned that structured products and, more particularly the marketing of them, seem to suggest that the investor can have the reward without the risk.
Given recent market conditions, it is perhaps not surprising to see a resurgence in both the marketing and use of the structured product. Varying market conditions will always lead to surges (and declines) in asset and product types which, for a limited period of time, become predominant or otherwise as investors seek to achieve the nirvana of guaranteeing money is not lost. But, given the basic tenets of investment management theory, is that nirvana really achievable? Are guaranteed/structured products really appropriate for retail investors, who generally buy into them out of fear and ...
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