Financial Times/Colby Smith and Tommy Stubbington/10-6-2020
“Ahead of a potentially disputed result on November 3, fund managers are casting around for new harbours to shelter from a potential storm. Popular strategies include short-selling currencies that mirror stock movements; derivatives that provide insurance against falls; and emerging market bonds that offer a higher yielding, though riskier, hedge for equity holdings.”
USAGOLD note: An argument could be made that such strategies unwisely introduce even more risk to the portfolio than existed before such “hedges” were introduced ……
