Saturday, May 16, 2009

Betting Against the Rally to Protect Your Portfolio

By BRETT ARENDS

This rally may have further to run. But investors might want to think about taking out some portfolio insurance -- just in case.

Luckily, the insurance, in the form of put options, is getting cheaper as optimism about the market grows. There are plenty of reasons for caution. Here are nine things the bulls should chew over.

1. Almost everyone on Wall Street is now bullish. Many sentiment indices are alarmingly complacent. The State Street Investor Confidence index is back to levels seen a year ago.

more in:
http://online.wsj.com/article/SB124238842419923639.html