Even the most prescient investor would have been hard pressed to predict the path of markets since the start of the pandemic.
However this turbulence — as with most crises — has caused many investors to look more closely at the benefits of downside protection.
There are several different ways of achieving downside protection, so it is important to have a structured approach to considering, discounting, and eventually choosing between the various methods.
In this paper we outline some of the main choices available to investors today.