Structured Notes

Project for the next week:

Step 1:  Check your portfolio to determine whether or not you own structured notes.

Step 2:  If you do, make sure you have a solid understanding of why you own them.

Step 3:  Give serious consideration to the suitability of “straightforward” investments that require a 30 page prospectus to explain.

Step 4:  Read articles on structured notes below.

These products are typically good for one person and it’s not the investor.  When you hear things like “upside participation without risking your original investment”, head for the exits.  This market is not that easy.  Annuities are another favorite of mine, but I’ll save that for another day.

The one investment you don’t need

Structured Notes Are Wall Street’s `Next Bubble,’ Whalen Says