Thursday, July 28, 2011

Considering a hedge

The continued impasse in the debt ceiling debate has markets nervous again, with this morning's modest gains for the broader indexes wiped out by the close. Today I considered adding a short term index ETF hedge to protect against additional downside, on the chance that an agreement can not be reached in time. But since volatility is elevated, such a hedge will be more expensive than usual, so for now I am just watching and waiting.