From “Advisors Asset Management” (AAM): The Upside of Downside Protection

From “Advisors Asset Management” (AAM):

“WHY DOWNSIDE PROTECTION?
Market declines are an inevitable part of investing and the primary reason many investors seek downside protection strategies for their portfolios. Such losses represent a threat to a portfolio’s long-term returns since:

• Greater positive returns are needed to overcome the decline
• Market declines erode the power of compounding
• Recovery may be more difficult during a withdrawal phase (such as retirement) because the new investment base is lower.”

Read more in these linked resources:

• The Upside of Downside Flyer
• SP500 Volatility

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