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As Market Volatility Returns, Check Out These Strategies To Protect Your Portfolio

johnNjohnN
edited June 2020 in Fund Discussions
https://www.forbes.com/sites/qai/2020/06/12/as-market-volatility-returns-check-out-these-strategies-to-protect-your-portfolio/#214c7ccc538b

As Market Volatility Returns, Check Out These Strategies To Protect Your Portfolio



Take advantage of any recovery today to initiate iShares iBoxx $ High Yield Corporate Bond ETF (HYG), iShares Russell 2000 ETF (IWM), SPDR S&P 500 ETF Trust ETF (SPY) and iShares MSCI Hong Kong Index Fund (EWH) put strategies. COVID-19 and economic disappointment potential is not a respecter of equity valuation. Yesterday’s performance reminds us that the markets tether to fundamentals can be loose, but it nonetheless exists.

We’ve been recommending playing for extreme outcomes and it still makes sense. Here is the cocktail designed to improve portfolio diversification against a number of scenarios and severity over the next several months until the picture gets clearer.

Comments

  • VintageFreakVintageFreak
    Can someone please translate...

    SPY 2m IV is in its 86th percentile and 34% expensive to forecast. 2m Skew is 0.70 standard deviations over its mean.

    ...WTF does this mean? Is it a recommendation to buy puts at particular SPY level? Because if so, I REALLY need to know.
  • Old_Skeet
    edited June 2020
    A short answer; not meant to be short with you. Beyond my pay grade. But, I'd also like to know.
  • sma3
    I think IV is implied volatility
    The bottom line is this is one of the most volatile markets in history . As option prices include volatility measurements, I think this means you could loose your shirt!
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