Today, the equity markets are displaying many of the same worrying traits that Shiller identified in 2000. Examine which factors that drove “irrational exuberance’ 22 years ago are still relevant today and identify new risk investors need to consider.
A HEDGE IS NOT INSURANCE AGAINST LOSSES
The effectiveness of the hedge and degree of downside risk mitigation varies with market conditions. The Defined Risk Strategy can and does have periods of losses.
Randy Swan discusses how the Defined Risk Strategy is designed to directly address market risk in order to help advisors build portfolios that generate consistent returns while protecting capital through market cycles.