It’s probably clear to many that we are strong believers in investing in good companies for the long term – we feel this is a solid investment strategy. However, we are fortunate to be part of a firm that facilitates the use of options, adding a valuable layer of protection for portfolios as well.
By the end of August, markets had experienced strong growth for 2021. Because it appeared political challenges might “worry” investment markets through the fall, we locked-in some investment gains. On September 3rd, we reset the floor of our hedges to the level of the S&P 500 at that time, while increasing the coverage to 25% of the Global Equity Pool.
While we hope the above comments are helpful, we recognize some will follow it more easily than others. The key message is that we use options so we can remain invested, while strategically reducing some of the inevitable volatility. Ultimately, our goal is peace of mind.
