Real Vision | How to Protect Your Portfolio in Crazy Markets
July 08, 2021
To many investors, the market feels crazier than ever. With sky-high valuations, central bank intervention no longer the exception but the rule, and the increased dominance of passive investing, it feels like the rules of the game have changed with no obvious end in sight. But whether you’re an individual investor or an advisor managing money for clients you simply can’t opt out and get left behind. That means adapting with strategies specially designed for this new world of investing. Through the power of convexity, Paul Kim, Mike Green, and the rest of the team at Simplify are providing unique beta 1 exposures to help advisors create portfolios that are protected when markets crash and outperform when they rip higher without reducing exposures and ensuring that they will fall behind.
Alpha: The excess return of an investment relative to the return of a benchmark index.
Beta: The volatility of a security as compared to the market as a whole.
Forward P/E: A version of the ratio of price-to-earnings that uses forecasted earnings for the P/E calculation.
S&P 500: The S&P 500 Index, or the Standard & Poor's 500 Index, is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the U.S.