In fact, I am adding some hedges today. This earnings season has already jumped 5% and the market is up in a nearly straight line over the course of the last few days. I would take this monster rally as an opportunity to add some hedges. My favorite plays? Short the Yen and writing some covered calls.
I still have a bull bias thru earnings season, but the move in recent weeks warrants a bit of caution. The TPC Model Portfolio is handily beating the market on a risk adjusted basis. I’ll have full details on it shortly….Stay tuned.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.