Protecting Junk Bond Principal With a Volatility Hedge
At the moment investment grade bonds with their low yields and risky exposure to interest rates are unattractive places to put your money. Broad equity indexes like the S&P 500 have higher potential gains and dividend yields in the 2% range, but the dramatic drawdowns of 2008/2009 are still fresh in our minds. Commodities like gold and oil look expensive—so where is a …
