Quote from CasperCRF:
I was looking to park some of my trading money in something while I take a break from trading due to a job situatoin. Now, I'm looking for things that have very low risk. ... So any one have any other ideas?
You don't have to go to cash to reduce or eliminate risk. You could buy put options against long equity positions.
EWJ, the Japan ETF, has broken out into a steady climb. Currently priced at $12.93. A June 2006 put option with a $13 strike price currently bids at $0.75. If EWJ climbs past $13.68 you'll profit. If it tanks, no worries, with the put you can exercise it at the $13 price.
Or, you could hedge stock holdings with an inverse mutual fund like ProFunds UltraBear.
