Not exact matches
The Strategic Growth Fund remains fully hedged, with the same «staggered strike» position we had
at the 2007
peak, which strengthens our defense against potential
market losses by raising the strike prices of our defensive put
options,
at a cost of just over 1 % of assets in additional put premium (which is relatively inexpensive with the CBOE volatility index currently
at about 17).
Both the VIX volatility index and the «put / call» ratio on the
options market are signalling the sort of complacency levels seen
at past
peaks.
More and more, electricity
markets are purchasing the lack of electricity use as a commodity, as «demand response»
options, in which companies lower their energy use
at times of
peak demand to reduce burdens on the grid, proliferate.
-- Implications of a declining
market: If the house is worth less than the mortgage balance when the couple split, which is likely if they purchased
at the
peak of the
market in 2006, the
options are grim.