The Fed Is Between A Bubble And A Hard Place [View article]
If the currency gets debased, presumably, Treasury bond market investors will soon demand higher yields. And if (when) they do that, bond prices will drop, as will the prices of Treasury bond ETFs such as TLT. If you own TLT and want to hedge against that, here are a couple of ways to do so in this instablog post: http://seekingalpha.co...
Depends what you're looking to hedge. If you want to hedge idiosyncratic risk of owning BRK, you'd by puts on BRK; if you just want to hedge market risk, you could buy SPY puts.
A brutal sell-off in Japan (previous) weighs heavily on Asian markets as stocks fall 2.8% in Hong Kong, 3% in Shanghai, and 1% in Seoul and Sidney. [View news story]
The EWJ puts I mentioned in this post ( http://seekingalpha.co... ) as a hedge on Japanese equities are going to shoot up later today.
How An Inexpensive Hedge Could Have Helped AFFY Longs [View instapost]
I can't claim to know the thoughts of "anyone who was long" AFFY at the time I wrote this post. Yes, capping potential upside can be a trade-off of collars. But in the example above, if the investor were still bullish on AFFY after it dropped 70%, he could have sold his appreciated puts then and the used some of the proceeds to buy to close his calls (which would have cost very little at that point), eliminating his upside cap, and then used the rest of his put proceeds to buy more of the stock for the ride up.
Dr. Doom Has Gold Going Below $1,000: Why His Thesis Is Spot On [View article]
If you're using gold as inflation insurance in your portfolio, you can use optimal hedges on GLD as downside protection for your gold. Those sorts of hedges came in handy for GLD longs a couple of months back: http://seekingalpha.co...
Another Way To Play The Boom In Mobile [View article]
Today we're seeing some of that volatility I warned about in the "risk factors" section of this article. WIRX dropped to > 20%$ to 1.65 this morning, before climbing back to $1.85 as of a moment ago.
How To Position Your Stock Portfolio To Win With Rising Interest Rates [View article]
That's a good point about duration, but nevertheless, it's the first time in the last couple of years I've seen JNK be cheaper to hedge than TLT, given the same parameters.
If you feel that way, you may want to consider picking up some puts on a Japan ETF such as EWJ. I did that myself last week, as I noted in this follow up instablog post: http://seekingalpha.co...
Market recap: Stocks closed sharply lower after a late selloff, perhaps sparked by profit-taking from money managers looking to rebalance at month's end. Although the Dow finished with its sixth straight monthly gain, today was the eighth session in a row where the index swung in a triple-digit range. Treasury prices fell again; 10-year yields, now at 2.19%, rose more than in any month since Dec. 2010. Oil and gold fell (I, II). [View news story]
The Fed Is Between A Bubble And A Hard Place [View article]
Locking In Berkshire Hathaway Gains [View instapost]
A brutal sell-off in Japan (previous) weighs heavily on Asian markets as stocks fall 2.8% in Hong Kong, 3% in Shanghai, and 1% in Seoul and Sidney. [View news story]
How An Inexpensive Hedge Could Have Helped AFFY Longs [View instapost]
Dr. Doom Has Gold Going Below $1,000: Why His Thesis Is Spot On [View article]
Why It Can Be Cheaper To Hedge JNK Than TLT [View instapost]
Time To Buy Long-Term U.S. Government Bonds [View article]
Time To Buy Long-Term U.S. Government Bonds [View article]
Superman [Catches Lois Lane in mid-air]: "Don't worry, I've got you".
Lois Lane: "“You’ve got me, but who’s got you?”
If TLT is your Superman, who's got your TLT? Here's a way to add a little Superman to your portfolio to protect your TLT: http://seekingalpha.co...
Another Way To Play The Boom In Mobile [View article]
How To Position Your Stock Portfolio To Win With Rising Interest Rates [View article]
How To Position Your Stock Portfolio To Win With Rising Interest Rates [View article]
How To Position Your Stock Portfolio To Win With Rising Interest Rates [View article]
Good point about how bond-like stocks could be adversely impacted by rising rates.
Sell-Rated Stocks In A Complacent Market [View article]
What Happens If Stocks Crash? [View article]
Market recap: Stocks closed sharply lower after a late selloff, perhaps sparked by profit-taking from money managers looking to rebalance at month's end. Although the Dow finished with its sixth straight monthly gain, today was the eighth session in a row where the index swung in a triple-digit range. Treasury prices fell again; 10-year yields, now at 2.19%, rose more than in any month since Dec. 2010. Oil and gold fell (I, II). [View news story]