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by inigyou 18 days ago
You almost always lose a lot of money if you're seeking safety. Protection from downside risk on your S&P500 investments may cost 20-30% of your investment at which point you're better off just selling the investment and hoping it doesn't go up by that much.
1 comments

> Protection from downside risk on your S&P500 investments may cost 20-30% of your investment

What? Absolutely not.

What did you buy and for how much?
You would buy puts. How much to spend is really up to you, but you can definitely get meaningful downside protection for much much less than that.
And what is the cost of full downside protection? It necessarily exceeds the full upside, or else everyone would do it.