Hi Friends,
About a month ago, things were looking ripe for a retracement so I put in a portfolio hedge with this volatility play - IPath VIX Short Term Future ETN:
I was looking Ok for a bit, but the market has continued to rise, and my hedge has now proved to be a failure and a drag on my performance, albeit not too significant of one. So it comes down to the age old question - sell, cut your losses and look for greener pastures, or hold tight with you conviction that volatility is upcoming and your hedge will come back?
The question is really one of being in the better investment now, regardless of what has happened in the past, though harvesting a tax loss usually has some benefits as well.
Thanks for coming by,
Brian