First Hint of U.S. Stock Losses Fuels Rush for Insurance
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After three years of non-stop gains in the U.S. stock market, investors are loading up on insurance at the first sign of trouble.
An index that tracks the cost of options used to hedge against a plunge in the Standard & Poor’s 500 Index has jumped to the highest level in almost 16 years, according to data compiled by Bloomberg. Stocks fell and volatility surged yesterday, sending the benchmark gauge for U.S. equities to its biggest loss in seven weeks, on concern over the outlook for Chinese stimulus and the health of the U.S. economy.