I’ve mentioned a few times over the past couple of months that I currently have the “Growth” allocation of client portfolios hedged against a drop in the stock market. In this post, I hope to explain what it means to be “hedged,” why it’s important to hedge risk, and how I’m currently doing so. From…
“Phase 3” Right Around the Corner for Stocks
For those of you that read my latest letter to clients (which I’m sure everyone did…but if you haven’t had a chance yet, you can find it here), the S&P 500 is about to enter what I consider “Phase 3”. This means it’s time to aggressively hedge/reduce stock risk. I spent a good bit of…
High Alert on US Stocks
The S&P 500 failed to close above some key levels last Friday for the end of the month which raises the probability we see some weakness this month. Interestingly, I recently read that the range of the stock market this year has been the tightest market since the 1880’s. So we’ll see if any weakness…
Portfolio Update: Options & Volatility
I wrote in my letter to clients earlier this year that the only thing I’m certain about in the markets moving forward is that volatility will be higher than the past few years. As we move further down the path of currency wars and central bank policy divergences, there are some large risks looming overhead…
Retirement Income Series, Part 3: Selling Options for Income
This post is going to talk about perhaps my favorite source of investment income. It’s something that very few people take advantage of because it can be a little confusing to learn but is ultimately well worth the time. I will go as far as to say that it is probably the most misunderstood and…
Risk Management, Cash & Selling Put Options
(Today’s blog post will be a bit more advanced if you’re not familiar with stock options. However, if you want to learn more, I have a video series you can subscribe to on my company’s website.) With the uncertainty over the debt ceiling, I wanted to talk about the importance of cash in a portfolio…