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The VIX As Hedging Strategy For Investment Portfolios
Volatile times require volatile measures… Incorporating the VIX Index into our hedging strategy.
The first quarter of 2022 has been a complete mess within the financial markets!
The overall market has been alarmingly influenced by political, social, economic, and some, as we can mention, ‘random’ events that had turned out these first months into a real challenge for investment portfolios.
We can look at the news (like the ones mentioned below) and see how volatility influences the most popular indexes and individual stocks in the market.
How big can these events affect investment savings accounts?
By looking at the VOO ETF on the first days of 2022, it’s not difficult to imagine the possible hits investment portfolios could be facing.
Of course, portfolio losses are related to prices at which the asset was bought and sold, but, seeing where we start in 2022 and where prices are now, pictures two completely different realities.
