2024-07-15 23:19:55 ET
Summary
- Implied volatility skew and low VIX signal complacent markets, potential for larger correction than previous drawdowns.
- Factors such as yield curve inversion, devaluation of Japanese yen, and resulting potential macro headwinds indicate the need for hedging the SPX.
- I cover how hedging for different crash expectations will lead to different hedges taken. The speed of the expected drawdown is the foremost concern.
- Hedging is doing the smart thing, don't mistakenly misconstrue it with market timing and dismiss it. I offer a simple example to see how it has nothing to do with timing.
Read the full article on Seeking Alpha
For further details see:
S&P 500: Seriously Time To Start Hedging