Hedging

are the fund managers. In fact, allocations into equities are the highest they've been since the 2009 global financial crisis. This worries us. Which has us asking if it's time to hedge portfolios?

Last week we pondered the idea of hedging longer-term portfolios for some downside protection. We also looked at a few instruments that could easily be added to your portfolio in order to provide that protection. This week we do not really have much to add, other than to reiterate the warning given last week. We think that it might get a little bumpy over the coming weeks. Thus we are happy to sit with some short protection and wait for better setups.