I have gotten a few questions from readers who have gotten a little turned around with the market moves of the last week. Given last week’s strong performance and what appeared to be an agreed upon compromise to some of the debt issues in Europe, many investors thought we had the all clear sign into the end of the year and bought stocks in an effort to play catch up after 10 months of very erratic equity returns. If you are one of those people it may make sense to consider some near term “relatively” cheap portfolio protection against a long portfolio. Especially when you consider the continued risk of disappointment out of Europe and the coming events of the following three days: FOMC meeting today, ECB meeting Tomorrow and G20 at end of week.
Co-Founder and Editor of RiskReversal.com