Currently my portfolio is roughly 60% long equities and 40% cash and I'm very skeptical about the short-medium term prices of equities given how highly the S&P and FTSE are trading relative to the underlying economic conditions for governments, economies and corporates.
I'm in the UK and my broker doesn't offer options on indices as that would be my instant go-to-hedge. I've done some back-of-the-envelope modelling and I'd need to invest something like 16% of my portfolio into 3x levered short ETFs to hedge out my risk entirely given various weighted betas, and that is too much capital to commit.
Is there any other way to hedge out down-side equity risk without options or levered ETFs?
Thanks!
Are they individual equities or funds? Do they let you trade options on individual stocks or ETFs? Can you use futures?
Individual equities, mainly large cap. I can trade warrants on some individual stocks, not on ETFs and no futures. It's quite limited!
Why isn't selling an option? Too many small positions?
Buy long dated govies
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