So this guy, evidently a financial advisor of some sort, friend of a friend,
was telling about this index fund that follows an index, let's say the
S&P500. The fund goes up when the S&P goes up, but when the S&P
goes down, the fund stays put. Sounds way too good to be true, the
only caveat being that "if the S&P goes up 15%, then fund only goes
up 12%". I asked what this fund is called, and he said "oh, Fidelity,
etc all the major companies have one".
Tempting to write him off as moron or a shyster, but I don't think he's
either, just perhaps a very poor explainer. Any idea what this guy may
have been trying to describe ?!?
was telling about this index fund that follows an index, let's say the
S&P500. The fund goes up when the S&P goes up, but when the S&P
goes down, the fund stays put. Sounds way too good to be true, the
only caveat being that "if the S&P goes up 15%, then fund only goes
up 12%". I asked what this fund is called, and he said "oh, Fidelity,
etc all the major companies have one".
Tempting to write him off as moron or a shyster, but I don't think he's
either, just perhaps a very poor explainer. Any idea what this guy may
have been trying to describe ?!?