To protect the current value of your portfolio, one analyst suggests that you simply sell one Standard and Poor Futures Index, sold on the Chicago Mercantile Exchange, for each $25,000 you have in your portfolio.
The index futures make a profit if the market declines. This usually about replaces the loss in stock price you might suffer if the market does go down. The net result is that your portfolio about holds it value as of the day you purchase the index, regardless of whether the market declines or advances.
The symbol of the futures index this analyst recommended is the ZBM7. You will be required to post a $2,000 deposit for each of the futures index contracts you sell. I would never suggest or recommend such a strategy as most investors do not need this level of risk or sophistication (if you can call it that) but I am letting you know of what is "out there".
Expect to hold onto the index until the correction is over according to this analyst. Hmm...Let's see, when would anyone know that? This is the problem with these tactics. Market-timing does not work and past performance is no guarantee of future results. There is a reason that is said over and over - it is true and there to protect you from trading nonsense.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.