Analysis: As worries over banks swirl, investors seek protection against market crash

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Investors are increasingly seeking insurance against a sudden crash in stocks, fearing that more tumult is in store for markets after worries over the banking system shook asset prices over the last week.

sent stock markets on a rollercoaster ride in the past week amid fears that another Lehman Brothers-style collapse may be looming. The S&P 500 is down 5% from its early February high though it remains up 3% year to date.

More evidence of investor anxiety can be seen in the S&P 500 three-month skew, a measure of relative demand for upside versus downside options wagers that shows the highest demand for protection since May 2022, according to data from Susquehanna International Group. Futures markets on Friday were pricing in a roughly 70% chance the central bank would raise rates by another 25 basis points at its March 21-22 meeting.

 

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The Govt and central banks must be sensitive to the changes being made longterm effects on the past instruments issued by it.

Investors have been advised to invest in big companies because our government will not let them go down no matter what.

Sure do. If everything goes up they are mega strong themselves

parasitic.

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