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It depends on what is your risk profile and time horizon. Safest bet and something which doesn't require any expertise - hold cash. The other extreme is to bu
by thisisit 8y ago
It depends on what is your risk profile and time horizon.
Safest bet and something which doesn't require any expertise - hold cash.
The other extreme is to buy LEAPS [1]. They are a cheap alternative to protecting your downside.
Now obviously both these two things are not full proof and have their ifs and buts.
Cash will lose value due to inflation. But at a slower rate than losing in a crash.
LEAPS are mostly 2-3 years out so if the crash doesn't happen you will lose your premium. But again a small price paid to save your downside.
There is one thing to stay away from is Bitcoin or cryptocurrency.
Gold has gone down in last 5 years. So, it still maintaining a slight negative correlation to stock bull market runs.
On the other hand, the supposed gold like bitcoin has gained lot of it's value in the last bull run. So, I am not convinced that there is an argument that bitcoin will hold when we start going into a crash.
[1]: https://en.wikipedia.org/wiki/LEAPS_(finance) https://en.wikipedia.org/wiki/LEAPS_(finance)