How Did Portfolio Protection Do on August 5?

Volatility Lessons Learned from the August 5 Mini-Crash

Did your clients reach out as US stocks tumbled hard on Monday morning August 5, 2024, down nearly 10% from all-time high on July 16?

Join options pro Mike Tosaw in this complimentary webinar for an after-action review of how portfolio protection—in the form of tax-smart market index put options—held up through the worst of the sharp correction, and how the right ongoing hedging can strengthen advisor-client relationships through market calm and turmoil.

Mike analyzes lessons learned for downside protection in the service of long-term investing, distinct from short-term speculation, showing how such hedging can be a prudent tool for buying down portfolio risk to a level where clients stay invested and find it easier to resist the temptations of panic selling. And, because markets don’t go up in a straight line, the August 5 mini-crash is also a recent real-world example of how hedges can position a portfolio to profit from inevitable corrections. Indeed the markets were largely recovered within two weeks, including outsized gains for many highfliers off the stomach-churning lows.