There are a number of strategies one can use to protect oneself against an upcoming bear run on the stock market. Here are a few of picks, let me know you thoughts in the comments. Of course this analysis applies to stock market as it stands in April 2017 and the upcoming three months.
- Keep your SToCKs but sell options against them.
Selling calls on your stocks will create a modest buffer against losses, of course this strategy falls apart if the market did the 37% dip like 2008.
- Buy a bear market fund
A bear market fund bets against the market. Good examples of a bear market fund is — PSSDX
- Buy a short long fund
Short long fund is able transact on short term positions. Good take on this is SWHEX
- Buy a treasury or municipal bond fund
VUSTX gained 20% when the S&P dipped 37% in 2008.
- Invest in Government Pipeline fixed income options .. really?