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?