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Use an SPT to manage concentration risk

24 Min Read
Stock Protection Trusts

Thanks to the active support of the Federal Reserve and other global central banks, the stock market has performed impressively over the past half a decade. As a result, many investors and trusts currently own positions in publicly traded stocks that have increased dramatically in value.

However, the market is currently facing a number of serious stressors, including mounting geopolitical tension around the globe, plunging oil and commodity prices, listless economies in Europe and China and, in the United States, the threat of higher interest rates.

Unfortunately, investors can easily materially underestimate the danger of holding a single stock for a long time. “Rock Bottom” (p. 27), depicts the 50 worst performing S&P 500 stocks over the...

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About the Authors

Elizabeth Ostrander

Elizabeth Ostrander is a managing director at Intelligent Edge Advisors in New York City.

 

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