“After the recent equity rally, we believe there is an attractive entry point to hedge the risk of a retracement,” the strategists said.
The recent sharp pullback in volatility as year-end approaches creates hedging opportunities given the cloudy outlook for equities, according to Goldman Sachs Group Inc. strategists.
Wall Street’s “fear gauge” — the VIX volatility index — last week hit the lowest since the coronavirus pandemic. But investors continue to weigh risks to the outlook, ranging from geopolitics, next year’s busy elections calendar and the potential for shocks on the economic growth front, the team led by Christian Mueller-Glissmann wrote in a note dated Nov 27.
