When investing at all-time highs, some wonder if the markets can continue to go up in value or if there is an inevitable drop coming.
Those who fear a drop have basically two options: 1) stay the course; or 2) employ a strategy that will pay off if there is drop in the market. Today’s episode looks at some strategies that people are considering.
How to Listen to Today’s Episode
Topics Discussed: Investing At All-Time Highs
- Stock markets are near record highs. Can they go higher?
- Is a stock market correction inevitable?
- How can an investor protect their investments from a stock market correction?
- Types of investments that often do well during a market correction.
- One strategy that some investors consider when stocks are near all time highs involve put options. Specifically, buying put options. Buying a put option gives the buyer the right to sell the underlying asset at a price stated in the option.
- Another strategy that people often consider at market highs is to move a portion of their stock investments into bonds. However, are bonds a good investment when inflation is a threat?
- What about the option of moving to cash in order to avoid potential stock market declines and potential bond devaluations?
