Cash and Hedging


Written on January 6, 2009 – 12:13 pm | by admin

I am still skeptical of this rally and the fact that things are better.  I still don’t see any help for housing or the consumer that is upside-down on their house (not that there should be any).  Until there is a housing fix or another earth-shattering plan, I am going to keep more cash on hand than normal (20-30%).

 I have also taken a portion of my money and purchased some long dated S&P puts to help hedge to the downside.  I am currently hedged with 3-4% of my overall portfolio and if we blast higher from here, I may look to add another 3% or so to that.  While 6-7% isn’t a big hedge, it could pay off if volatility makes a comeback sometime during the first half of the year.

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  1. One Response to “Cash and Hedging”

  2. By Susan Kishner on Jan 6, 2009 | Reply

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