I do not trust this market. While deals are starting to pop up in the energy space after a sell-off in crude, the rest of the market is getting expensive, and the slightest hint of weakness seems to send it down. Take October, for example. No sooner had third-quarter earnings started than the market went into a tailspin, falling nearly 8% before starting its recent rebound. Some nervousness and profit-taking is to be expected after more than five years of a bull run, but there was really no reason for the market to sell off. Earnings promised to surprise as… Read More
I do not trust this market. While deals are starting to pop up in the energy space after a sell-off in crude, the rest of the market is getting expensive, and the slightest hint of weakness seems to send it down. Take October, for example. No sooner had third-quarter earnings started than the market went into a tailspin, falling nearly 8% before starting its recent rebound. Some nervousness and profit-taking is to be expected after more than five years of a bull run, but there was really no reason for the market to sell off. Earnings promised to surprise as the U.S. economy zipped higher. Sluggish growth in Europe had been an issue for more than a year, and the Ukraine conflict was still just simmering. When even a strong earnings season fails to keep stocks from swooning, you know market valuation is getting stretched. When this happens, I start looking to protect my portfolio from the next bout of irrational selling. #-ad_banner-#The traditional method of put option buying for protection involves a bet that the shares I hold are on their way lower. But I like the stocks I… Read More