With a simple, transparent strategy, it's possible to provide equity market protection without removing equity exposure entirely.
By James Walton and Ryan McGlothlin|December 19, 2018 at 09:54 AM
Thank you for sharing!
Your article was successfully shared with the contacts you provided.
Many investors will be familiar with the concept of buying put options to hedge exposure to the equity markets: An investor pays a premium to buy the option to sell equities at a specified level (such as 10% below the current level) at a future date — such as in one year).
Investors may also have the view that using options to hedge equity exposure is costly and complex and that more traditional de-risking strategies, such as selling equities to buy bonds, are better.
Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.
Your access to unlimited BenefitsPRO.com content isn’t changing. Once you are an ALM digital member, you’ll receive:
Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
61% of employers surveyed consider caregiving benefits to be a top priority for their business and employees, yet 22% consider themselves as below average in developing caregiving benefits. Download this info sheet to help your clients remain competitive by offering a care benefit package.