Hedging to Protect Assets in Stock Market Declines
In 2020 during the Covid selloff we Hedged and went to cash with our Assets when the S&P 500 dropped below the 50 day moving average, a Bearish technical signal, ( BLUE LINE, GREEN CIRCLE ) , thus putting our Assets in neutral. With these Hedges we missed the entire Stock Market decline below the 50 day moving average and this put us in great shape to take advantage of the Covid Stock Market selloff. When the S&P 500 crossed above the 50 day moving average, a bullish technical signal, ( Black Circle ), we then starting buying at much lower levels. This allowed us in 2020 to have tremendous Stock Market returns for our clients while protecting their assets and limiting risks on the downside. In