Even as the Dow flirts with 10,000, few investors are climbing aboard the rally, and many can’t bear the idea of losing more money. Barron’s Leslie Norton reports.
Do not value money for any more nor any less than its worth; it is a good servant but a bad master. ~Alexandre Dumas fils, Camille, 1852
According to the CFTC weekly data for the week ended Tuesday, net shorts in the euro fell by 38% from last week's record high and are now at a 6 week low. Net shorts in the pound moved up a touch to just shy of its record high. Net longs in the Australian$ rose to the most since May '08 and net longs in the Canadian$ rose to the highest since Nov '07. Gold new longs fell to a 4 week low. Net longs in crude rose 14% and are just 12k contracts from a record high dating back to...
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September 21st, 2009 at 8:03 am
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September 21st, 2009 at 8:22 am
Investors may be reluctant to lose more money? Gee whiz.
“They want more safety, preservation of capital.”
Why isn’t anyone (besides me) recommending that investors use collars to guarantee limited losses – while still leaving room for making money in a rally? This video suggests ETFs and Indexes may be what investors seek. But imagine how well protected against loss they would be if they collared those investments.
Options can be used to reduce risk. That should be a more widely known fact.
http://blog.mdwoptions.com/Options_for_Rookies