Investors Are Shunning Hedges in the Trump Rally, Goldman Sachs Says
- Low premium for equity and credit hedges indicates complacency
- Snap up downside protection on S&P 500 while it’s cheap: GS
Euphoria Versus Justification in Today’s Markets
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Hedge the inauguration, bet the presidency.
That’s the mantra of investors diving into the U.S. stock rally with only modest downside protection despite a gale of headwinds, from elevated corporate leverage and Federal Reserve rate hikes to U.S. policy risks.