How would you hedge the US financials?

[Handle123]

I am thinking more longer term trade of months and really if it goes to 100, all the better, but am doubting it would go that far. If Trump continues to talk to corporations and bring back our economy, wow, we could be looking for much higher Dow, cause we have had a number of years of decline in our citizens wealth.

 

[vaffab]

Thank you for all the response. It's not an ETF I am intending on trading in the short term so possibly a hedge is not required.

What are your postitions on the Financials for the upcoming year? We've already seen a 20% rise since the election, is there more scope for growth do you guys think?

 

[vaffab]

You could buy put options, but it's expensive. What do you hope to achieve by hedging?

I am hoping to achieve a safer trade of course. Pardon my ignorance but would you normally only hedge individual positions (equities) as opposed to ETF's?

 

[ET180]

Thank you for all the response. It's not an ETF I am intending on trading in the short term so possibly a hedge is not required.

What are your postitions on the Financials for the upcoming year? We've already seen a 20% rise since the election, is there more scope for growth do you guys think?

There's already many high expectations priced into financials. But if interest rates continue higher, if GDP hits Trump's 4% target, or if Dodd-Frank is repealed, (all which would increase earnings) sure financials can go higher. Personally, I like other sectors such as oil (HAL / MRO / XOP), biotech (CELG / XBI), and small parts of tech (MSFT) better.