Fearless Stock Bulls Start Hedging as Fed Policy Pivot Stalls
From Yahoo Finance: 2024-04-06 12:00:00
The recent volatility in the S&P 500 has traders considering the importance of hedges after a series of record highs. The Cboe Volatility Index, or VIX, reached its highest level since November, indicating increasing desire to protect against potential downturns. Investors have been adding hedges, including tail-risk hedges and put spreads, to shield against market uncertainty. Concerns surrounding geopolitical tensions, the upcoming US election, and central bank policy are driving demand for protection. With uncertainty looming, investors are preparing for potential market turbulence by hedging against various risks.
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