Rick Ackerman understands markets. He’s been trading options for decades. We asked him how one should go about protecting a portfolio from a sudden market decline. His answer was to invest in Treasury Strips. That way if the market takes a hit, money will presumably go rushing into treasuries, thereby lifting their prices and helping you make back much of your portfolio losses. At this point in the bull market, you need to be thinking about preserving your gains and your capital.
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