Market Risk: Warning

My Market Risk Indicator is signalling today. That means I add a mid term volatility hedge to the Volatility Hedged portfolio and the Long/Short hedged portfolio. The Long/Cash portfolio goes 100% to cash. The portfolio allocations are as follows:

  • Long/Cash portfolio: 100% cash
  • Long/Short hedged portfolio: 50% long high beta stocks and 50% long mid term volatility (or an ETF like VXZ or VIXM)
  • Volatility Hedged portfolio: 50% long and 50% long mid term volatility (or an ETF like VXZ or VIXM)

Use your own judgement and personal risk preferences to allocate your own portfolios. And, of course, never trade a financial instrument that you don’t understand.

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