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Goldman Sachs' New CD Is A Bad Deal For Investors

Monday, December 19, 2011 - 7:03 AM
Larry Swedrow at CBS MoneyWatch has a review of Goldman Sach's new CD that will supposedly be released soon. It's a CD that's linked to the Dow Jones Industrial Average. I posted on Motley Fool's review of this last week.

The article does a good job at showing why this CD like many similar ones are not good deals for the investors:
These instruments are very complex, and the complexity isn't designed in the investor's favor. We have looked at many structured products and have yet to find one that benefits investors rather than issuers.

You have to wonder if the long-term success of a diversified stock portfolio is such a "sure thing", why can't these big investment companies offer an equity-linked CD with minimum returns competitive with traditional CDs?
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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