Buying “Insurance” Now Is Expensive

“If you knew it was going to happen, you would have bought insurance before, or even better, you wouldn’t even have been there!”

~ me

Some people approach me about the best way to protect a portfolio in a falling market:

“Can I buy puts?”

“Are there investments that go up in a down market?”

“Aren’t there ways to ‘insure’ my portfolio?”

Of course you could do those things, but doing those now is much more expensive than doing them before the market starts falling! Sometimes it just makes sense to sell a position since it would be too expensive to “put protect” it.

Bottom line, if you are still in reaction mode when it comes to making decisions, with no plan, you need to rethink your whole process.

*Remember folks, this is not investment advice specifically for you. It’s just something to think about ok? THINK (especially for those who usually don’t!)