If you didn’t – your late! Apparently, many Americans have nothing to worry about:
No stock picks today – but I am still trying to work out a Hedge Trade. This is not easy, as I have explained in the past – it is far more efficient to simply substitute riskless assets for risky ones when the market presents the most risk, rather than putting on a Hedge. So why am I looking at doing a Hedge Trade? Simple, I see a few catalysts for the trade – and I am bored:
- Catalyst One – North Korea
- Catalyst Two – Pending US Government Shut Down
- Catalyst Three – Sell in May and go away
With that said – most hedge strategies lose money, they are insurance for your portfolio – insurance costs money. Also, I have not found a decent strategy to date that seems worth the expense – but I am looking, so stay tuned.
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