Stock market crash hedges are failing, more downside ahead: strategist - Business Insider

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'Expect more stock-market weakness': A Wall Street strategist lays out how investors' most-trusted defenses against crashes are failing them at a critical time

Since the stock market's recent peak on Sept. 2, traditional safe havens including Treasurys and gold have not sufficiently helped investors hedge their losses.

In recent weeks, the market has demonstrated just how vulnerable it is to being swayed in either direction depending on the news of the moment. Tchir, who is the head of macro strategy at Academy Securities, does not have a big, bearish trigger in mind that he's trying to draw attention to. Rather, he is advising bullish investors to exercise caution before they eagerly buy into the market's weakness. At the core of his concerns is that several of investors' favorite hedges in times of turmoil are showing signs of inertia.

Traditional hedges in the options market have also not been performing as expected, Tchir points out.

 

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People buy stocks in an attempt to make money fast. And forget the important thing that the game on Wall Street is a long-term game

Go to pampers

paywall Not enough reason to pay for this (my opinion)

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