In another thread, brewer said:
I am thinking that on the next idiot pop in the equity market (most likely a Fed relief rally, or something similar), I will be buying some long-dated index puts.
I have a fairly low allocation to stocks right now, so I'm fairly comfortable letting it ride, but I have been considering hedging my equity exposure.
What's the best way to do this?
Which index would you choose?* To me, it looks like QQQQ has been the most sensitive to the economy, but I assume those options are the most expensive due to higher volatility.* * Would you try to match the index to your particular allocation?
How far out would you go, and would you try to match your put size to your total equity exposure?
I've also read a bit about "portfolio insurance" strategies, but it looks like a lot of trading is involved, and these strategies failed in the last big downturn.
Maybe I should move into Hussman's fund.