Record Equity Investor Calm Means It's Cheap to Hedge Trump Risk: Bank of America
Low market volatility means investors should snap up protection on the cheap, according to Bank of America, as macro risks rise.
Donald Trump, center, waits in an elevator in the lobby of Trump Tower in New York, on Jan. 16, 2017.
Photographer: Anthony Behar/BloombergThis article is for subscribers only.
Batten down the hatches.
Investors should dive into the options market while it's cheap to hedge against potential shocks under Donald Trump’s presidency, as global equity volatility remains at record low levels despite surging policy risks, Bank of America Corp. strategists warn.