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Protect Your Wealth with Principal Protected Notes

Posted December 20, 2007

“By design, these securities are for investors who want to participate in the potential gains that stocks offer, but who also desire total protection from losses.” — Investment U.

Blogger’s Note: With the R-word on everyone’s lips and investors looking at a very cold winter indeed, we thought you might appreciate a new way to safeguard your assets. Our friends at Investment U have given their readers a chance to protect their investments with a sneak peak into one of the Oxford Club’s latest books: The “Zero-Downside” Profit Report. And we thought you’d appreciate finding out more about principal protected notes.

by Investment U

Baltimore – (TFN) Principal protected notes, also referred to as “Bull Notes” are transforming the way people invest their growth portfolios these days…

By design, these securities are for investors who want to participate in the potential gains that stocks offer, but who also desire total protection from losses. They’re built to do two things:

1. Completely eliminate an investor’s downside risk; and

2. Earn returns that are tied to the performance of a group of stocks.

If you don’t already own these investments, it’s probably because you didn’t know they exist. But now that you do, here’s why you may want to add them to your portfolio right now…

Principal-protected notes are essentially bonds with returns linked to a stock or sector index. And, like bonds, these “bull notes” have a term, or maturity date. But no matter how poorly the index it tracks performs, the financial institution backing these notes guarantees you will NOT receive less than your initial investment at maturity.

What’s more, bull notes are as easy to own as any publicly traded stock.

Like stocks, new bull notes are introduced to the market through a public offering. They’re typically put on sale at $10 a share. This price is significant because it represents the principal amount of the investment.

As long as you’ve purchased your bull notes at the offering price, whether directly through the sponsoring financial institution or on the secondary market (like the NYSE or the AMEX), you are entirely protected from any downside risk. That means the institution backing the security will pay you no less than the public offering price at maturity.

Profits are linked to the performance of an underlying index, like the S&P 500 or the Dow Jones Industrial Average. Only now, there’s no reason to sell if the market is down temporarily… Read on here to learn where you can find the right notes to protect your assets today.

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