No. of Recommendations: 2
That's a bold move, would you be willing to share what brokerage you decided to use?
I've been exploring hedging my defenses. I thought I was in a good defensive position by being 50% in T-bills (actually in funds SNVXX and SGUXX), but have recently been thinking about the need to hedge my defense.
To hedge my defensive position, I've been considering buying OTM calls on IGOV and BWX, which are unhedged ex-U.S. sovereign bonds funds of relatively short duration.
Why ex-U.S.? Because in the scenario I'm concerned about, T-bills wouldn't be considered a safe harbor so there'd probably be a flight to ex-U.S. sovereign funds, increasing their price.
Why unhedged? Because in the scenario I'm concerned about, the dollar would drop and unhedged ex-US funds would rise relative to the dollar.
Two possibilities for upside.
And/or might buy some disaster puts on something like BIL to offset declines in the funds I'm curently in.
I could change my present fund investments in SNVXX and SGUXX to direct T-bill investments, but am not sure I want to hold T-bill during a U.S. default.
However, I am still just musing about options. Other thoughts would be welcome.
