Answering a Not-So-Simple Question

At some point, we'll get a meaningful pullback or perhaps more but right now, investors are wrestling with this uncertainty. This may be a bit harder on long-term holders who want to protect their positions, but not take themselves out of the game.

When I was asked about my thoughts on SPDR S&P 500 (SPY) put options this weekend by a colleague here who also happens to be a good friend, it got me to thinking about how a longer-term investor may want to approach hedging right now. We often build hedges with the hope we'll never actually need them. If this becomes the case, then we question why we even bought the hedges. Of course, hindsight is 20/20, so the first rule is to remember what the situation was when you bought the hedges, not the results....783 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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