Invest Skeptically

I’m posting this as a follow-up to a previous post about a newspaper ad for an index-linked GIC product. Rob Carrick at the Globe and Mail (June 9, 2007) writes, There’s a price to pay for investment guarantees, about principal protected notes (PPNs) and index-linked guaranteed investment certificates (GICs).

His conclusion: “Once you know the costs and limitations of this kind of investing, though, you have to ask yourself if risk-free exposure to stocks is worth having.”