Risk Weather can’t predict the future, though it is a crystal ball insofar as it measures what investors are expecting in terms of price volatility.
In so-called “perfect markets”—an assumption not shared by all market commentators—the price of downside protection should accurately reflect actual market conditions, and there is no investing edge to be had by timing the purchase of downside protection.
That said, investors who like to ‘buy low / sell high’ may find Risk Weather Alerts extremely useful for knowing when protection costs are relatively low or high, and for selecting the duration of downside protection coverage—for example buying shorter-term protection such as one week or one month when costs are relatively high, and buying longer-term protection such as three months or one year when costs are relatively low.
Downside protection can also be a great tool for getting invested—and staying invested—for exposure to any long-term growth in stock markets, because it limits potential losses without having to exit the market.
Risk Weather is not investment advice.