Why did Syfe introduce the Downside Protected Portfolio now?
We believe now is a strategic time to consider the Downside Protected Portfolio (Or Protected Portfolio for short) for three key reasons:
- Firstly, Relatively Expensive Market: The S&P 500 is currently trading at relatively expensive valuations. While we remain optimistic due to strong earnings and long-term growth potential, historically, periods of high valuations have been more susceptible to pullbacks.
- Secondly, Increased Expected Volatility: We are entering a critical period marked by both monetary policy and political uncertainties. The upcoming US elections in November add unpredictability to future policies, and the Fed is at a pivotal point where it may cut rates to address a softening job market. These factors are likely to lead to increased market volatility.
- And thirdly, Attractive Pricing: The constituent ETFs in the Protected Portfolio are currently offering the highest upside return caps seen in the past five years. This makes the
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