It's a truism that the time to invest is when a market is low or a sector undervalued, but those same conditions tend to worry most individual investors (and not a few professionals) - who are more likely to keep their capital in cash and out of the markets until renewed activity is well under way and much of the opportunity has been missed.
Pension investors in particular are generally unwilling to go for recovery situations – especially those near to retirement, who are more usually inclined, even in relatively stable times, to quit equity investment altogether to protect the value of their benefits in the run-up to pension age. Structured products can offer a way for these investors to participate in potential market growth while safeguarding their capital. By employing a combination of derivatives to capture returns – and other financial instruments to provide the appropriate protection – they allow investors to enjoy mos...
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