Sign up to save your podcasts
Or
Share Why “Market Protection” Products May Be Hurting Your Long-Term Wealth Buildin
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Why “Market Protection” Products May Be Hurting Your Long-Term Wealth Buildin
The investment world has seen an explosion in products promising to protect investors from market downturns. But as discussed on a recent episode of The Tom Dupree Show, these “market protection” vehicles often come with significant hidden costs and limitations.
## The Rise of Buffered ETFs
The market for buffered ETFs has grown dramatically in recent years:
– 2018: 13 funds with $3.8 billion in assets
– 2023: 342 funds managing $108 billion
While these products promise downside protection, they typically cap upside potential and come with complex derivative structures that can create unexpected risks.
## The Problem with Playing Not to Lose
As Tom Dupree explains, focusing too heavily on protection is like a football team playing not to lose rather than playing to win. This defensive mindset can lead to:
– Missed opportunities for growth
– Higher fees and expenses
– Complex product structures that may not perform as expected
– Limited ability to benefit from long-term market appreciation
## A Better Approach: Quality Company Investment
Instead of relying on complicated protection products, the show advocates for investing in quality companies that:
– Maintain strong competitive advantages
– Demonstrate consistent dividend growth
– Show continuous operational improvement
– Generate sustainable profits through market cycles
## Key Takeaways for Investors
1. Focus on long-term wealth creation rather than short-term protection
2. Consider dollar-cost averaging to manage market entry risk
3. Invest in companies with proven track records of operational excellence
4. Understand that market volatility is normal and often creates opportunities
5. Avoid complex products that limit upside potential
Remember: True wealth creation comes not from avoiding all risk, but from making intelligent investment decisions aligned with your long-term goals.
*For more information about building a resilient investment portfolio, contact Dupree Financial Group at 859-233-0400 or visit dupreenfinancial.com.*
The post Why “Market Protection” Products May Be Hurting Your Long-Term Wealth Buildin appeared first on Dupree Financial.
View all episodes
By Tom Dupree
4.1
1414 ratings
The investment world has seen an explosion in products promising to protect investors from market downturns. But as discussed on a recent episode of The Tom Dupree Show, these “market protection” vehicles often come with significant hidden costs and limitations.
## The Rise of Buffered ETFs
The market for buffered ETFs has grown dramatically in recent years:
– 2018: 13 funds with $3.8 billion in assets
– 2023: 342 funds managing $108 billion
While these products promise downside protection, they typically cap upside potential and come with complex derivative structures that can create unexpected risks.
## The Problem with Playing Not to Lose
As Tom Dupree explains, focusing too heavily on protection is like a football team playing not to lose rather than playing to win. This defensive mindset can lead to:
– Missed opportunities for growth
– Higher fees and expenses
– Complex product structures that may not perform as expected
– Limited ability to benefit from long-term market appreciation
## A Better Approach: Quality Company Investment
Instead of relying on complicated protection products, the show advocates for investing in quality companies that:
– Maintain strong competitive advantages
– Demonstrate consistent dividend growth
– Show continuous operational improvement
– Generate sustainable profits through market cycles
## Key Takeaways for Investors
1. Focus on long-term wealth creation rather than short-term protection
2. Consider dollar-cost averaging to manage market entry risk
3. Invest in companies with proven track records of operational excellence
4. Understand that market volatility is normal and often creates opportunities
5. Avoid complex products that limit upside potential
Remember: True wealth creation comes not from avoiding all risk, but from making intelligent investment decisions aligned with your long-term goals.
*For more information about building a resilient investment portfolio, contact Dupree Financial Group at 859-233-0400 or visit dupreenfinancial.com.*
The post Why “Market Protection” Products May Be Hurting Your Long-Term Wealth Buildin appeared first on Dupree Financial.
More shows like The Tom Dupree Show
View all
The Joe Rogan Experience
229,277 Listeners
KSR
4,094 Listeners
WLAP Sports
55 Listeners
All-In with Chamath, Jason, Sacks & Friedberg
9,930 Listeners
Interrupted by Matt Jones
1,055 Listeners