October 21 2022 Option Professor Observations & Opinions
The Option Professor has encouraged investors to LEARN about ways to PROTECT your portfolio from DECLINES and Upside surprises for MORE THAN 2 YEARS. The reason it became so OBVIOUS that asset values (stocks & bonds) were ripe for decline starting last November was the the Fed said they were starting on tightening cycle. It also coincided with a PEAK in the M2 money supply which when it’s declining asset prices can follow just as they rose when M2 was soaring 2019-2021. We have been in this investment arena since Volker so we know the consequences of runaway inflation on rates & asset values. The main reason is that VALUATIONS contract as the rate of interest is a sizeable part of the calculation.
The big question is….Why didn’t your information provider not explain the details of how some types of portfolio insurance may be warranted and acceptable? The standard line is that the bond side of your asset allocation provides an offset to the risk on the stock side EXCEPT if rates are rising AND stocks are falling such as in 2022. This year 80-20 60-40 50-50 40-60 asset allocations have all been hammered,
WE STILL encourage investors to get our PDF Reports on Protecting Portfolios from Decline and UPSIDE surprises AND Our technical indicators we use to determine market direction & 1-on-1 Markets Review Now the question is whether we take out SPX 3550-3600 or will we be able to get a huge rally toward the high end of the current range of SPX 4200 as we head into 2 more Fed meetings & CPI’s & Jobs Reports
Call Us at 702-873-8038…Talk with Us…Ask Your Questions…Information From an Informed Source
The Option Professor- Graduate Boston College-Trained-The Options Institute-35+yrs Knowledge-Share
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The Option Professor
Remember All investing involves risk and it is not right for everyone. CONSULT YOUR BROKERAGE FIRM-broker to determine your own suitability and risk tolerance. Past performance is not indicative of future results. Information and opinions are provided for informational purposes only It is NOT advice