No need to fear the bear if you’re protected.
(more…)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.
Update On A Bear-Proof Portfolio
Triumvirate Follow-Up
I normally do just one or two premium posts a week, but yesterday alone I did three. I wanted to briefly touch on all three and do at least a tiny victory lap.
The first one, Backing Off, stated I was closing out some positions, including a big QQQ August put position, in light of the trendline. Looks like that was the right choice!
An Ocean of Oil at my Feet
Investing In A State Of Fear
Think back New Year’s Eve, and all the uncertainty still surrounding COVID, and the aftermath of a disputed election. If an investor told you he had $500,000 and was unwilling to risk a drop of more than 20% over the next six months, what would you have suggested he do?
We addressed this question in a post published on New Year’s Day: New Year, State Of Fear:
Our approach to investing in a state of fear is to buy likely winners and hedge away the fear. Here’s an example, followed by an explanation. Let’s say that you have $500,000 in cash you want to put to work in 2021, but you aren’t willing to risk a drawdown of more than 20%. If you indicated that in our hedged portfolio construction tool on New Year’s Eve,
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