It's Time To Hedge

The article warns that near-record leverage, elevated valuations, and extreme optimism are producing one of the weakest equity risk-reward setups in decades. It advises investors to shift from market-timing to downside portfolio protection as risk appears increasingly asymmetric to the downside.

Analysis

The article warns that near-record leverage, elevated valuations, and extreme optimism are producing one of the weakest equity risk-reward setups in decades. It advises investors to shift from market-timing to downside portfolio protection as risk appears increasingly asymmetric to the downside.