DD Support Board and Research Team

[samsamsamiam]

I'm always leery of "products" that talk of hedging which can be unreliable and too costly to be worthwhile. Retirees who buy dangerous high yield investments dearly want to believe claims that risk has been hedged away by "proprietary" financial engineering by brilliant managers. In my opinion, that kind of hedging is mostly marketing and perhaps a con.

I was feeling that way about that fixed income portfolio Schwab put together for me. Everytime they mentioned they were leveraged and hedging I was hating it given it was presented as a safe investment. Something wasn’t sitting right with me - so glad I sold and did the short term treasuries for now.

I was surprised Schwab made some statement they weren’t involved with long term bonds that were causing problems. Because I felt that is exactly what they gave me. I think they had some deal going with Pimco though that was part of that fixed income portfolio.

https://www.dailymail.co.uk/news/article-11858581/amp/Billionaire-investor-Charles-Schwab-loses-3BN-personal-fortune-just-THREE-DAYS.html

Just getting uncomfortable with all this.