TVIX Stock – The Sizzling Stock Market Is Making Investors Uneasy
Stocks are at all-time highs, and investors holding the priciest ones are starting to get uneasy.
Sitting on the sidelines as the S&P 500 Index is setting records almost daily isn’t a great investing strategy, but stress is building below the surface. Judging by the growing demand for a variety of hedges, investors are seeking insurance in case stocks reverse course.
“The S&P 500 is at new highs which we must label as a positive,” JC O’Hara, an analyst at FBN Securities Inc., wrote in a note to clients. “However, there are a few warning signs that have started to appear.”
For options tracking the S&P 500, the ratio of outstanding puts-to-calls climbed to its highest level in more than two years as the gauge moved above 2,500 for the first time on Friday, data compiled by Bloomberg show
Bearish bets are also piling up among mega-cap stocks, the biggest contributors to U.S. equity gains this year. As the Nasdaq 100 Index rose to a new high on Sept. 13, demand for protection grew to the most in over a year on the most popular ETF tracking the index, the Powershares QQQ Trust.