Why The Smart Money Likes Reinsurance Vehicles

Randy Swan is Founder of Swan Wealth Advisors, an SEC-registered RIA that has used their low-risk "Defined Risk Strategy" (DRS) to generate +9% annualized returns for investors since 1997. The structured strategy utilizes options for downside protection, an instrument that Swan likens to be "investment insurance" which investors should use in the same way that people use insurance in everyday life. During three of the last four down years of the S&P 500 (2000 - 2002 and 2008), Swan’s DRS strategy yielded positive returns (up to 12%). In 2008 when the S&P 500 dove 37%, the Defined Risk Strategy protected capital with a modest drawdown of only -4.5%. Adding up those four years, the S&P lost over 80% while DRS...