Stocks and Investing
Stocks and Investing
Wed, November 27, 2024
[ 01:00 PM ] - Thomas Matters
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Investors cling to crash protection despite sizzling US stock market rally
- Demand for options protection against an equity market crash is rising, even as a post-election rally takes U.S. stocks to record highs.
The article from Reuters discusses how, despite a robust rally in the U.S. stock market, investors are still heavily investing in protective options like put options to hedge against potential market downturns. This cautious approach stems from concerns over high valuations, geopolitical tensions, and the possibility of an economic slowdown. The demand for these protective measures has kept the cost of hedging relatively high, with the Cboe Volatility Index (VIX) hovering above its historical average. Investors are particularly focused on the upcoming U.S. presidential election and its potential market impacts, as well as the Federal Reserve's monetary policy decisions. Despite the market's strong performance, with the S&P 500 and Nasdaq reaching record highs, the persistent buying of crash insurance reflects a broader market sentiment of caution and preparedness for volatility.
Read the Full Reuters Article at [ https://www.reuters.com/markets/us/investors-cling-crash-protection-despite-sizzling-us-stock-market-rally-2024-11-27/ ]
Read the Full Reuters Article at [ https://www.reuters.com/markets/us/investors-cling-crash-protection-despite-sizzling-us-stock-market-rally-2024-11-27/ ]
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