Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

A Pragmatic Approach to Hedging

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A Pragmatic Approach to Hedging: Navigating an Extended Bull Market

“The markets can remain irrational longer than you can remain solvent.” — John Maynard Keynes

It’s a sobering reminder that even the most seasoned investors aren’t immune to the fickle nature of the financial markets. Today’s S&P 500 seems to be on an endless upward trajectory, defying gravity with each new high, tempting traders to believe in an unbreakable rally. But history whispers a different tale—bull markets, no matter how robust, are often punctuated by sharp, unexpected corrections. While no one can predict with absolute certainty when the tide will turn, prudence suggests preparing for the inevitable. Strategic hedging isn’t about forecasting the future; it’s about fortifying your portfolio against it. This is where the bear call spread becomes more than just a strategy—it becomes your safety net when the euphoria fades.

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