Summary
The U.S. stock market is up more than 200% over the past 7 years.
Bond yields are being manipulated to artificially low levels.
Quantitative easing and the federal deficit hang over the U.S. economy.
Geopolitical risks are on the rise.
We are currently seven years into a 200% stock market recovery that began in 2009 – one of the longest recoveries on record – so it’s natural to wonder how much further this bull can run. Additionally, we face unprecedented geopolitical and fiscal risks. In other words, most of us are justifiably concerned, but we don’t want to miss out on future potential gains. I personally moved to defend way too early in 2011. That was an expensive move in both absolute and relative terms. I’ve lost money. Now I can’t change my positions because it would likely be selling at the bottom. I’m locked for now, waiting for a correction. Timing is everything.
Fortunately, it’s not too late for you. You have alternatives for protecting your investments, and you can decide when you want to start. Here are a dozen choices.
A Dozen Ways to Protect Your Portfolio from Losses
