When you hold a particularly risky stock (one that can quickly swing high or low in price) or during times when the stock market as a whole is experiencing a lot of volatility, put options can act as
insurance against downside risk.
Meanwhile, bonds are serving as a form of
insurance against the downside risk of stocks.
In my personal opinion, the emphasis upon taking out
insurance against downside risks lies in conflict with the shift to data dependency given long and variable lags of monetary policy impacts on the broader economy which could have counselled front - loading insurance cuts rather than scattering them (if delivering any more at all) in which case precious little insurance has been taken out.
Not exact matches
«Another option would be to buy put options on current positions as
insurance against further
downside moves.
However, besides the risk of the policy lapsing, there are few
downsides to borrowing
against your universal or whole life
insurance policy.
We also have substantially increased our position in disaster
insurance... We continue to be willing to give up a portion of our upside to protect
against serious
downside exposure.
BrightLife ® Grow is flexible premium universal life
insurance that offers interest crediting linked to major market indexes, so you can participate in the limited upside potential of the equities markets with built - in guaranteed
downside protection
against declines in the value of the applicable index.
BrightLife ® Grow is flexible premium universal life
insurance that offers interest crediting linked to major market indexes, so you can participate in the limited upside potential of the equities markets with built - in guaranteed
downside protection
against declines in the value of the applicable index.