Hedging stock-market sell-off hasn't been this cheap since 2008: BofA

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Hedging stock-market sell-off hasn't been this cheap since 2008: BofA
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Betting on a US stock-market crash hasn't been this cheap since 2008, Bank of America says

Put options on the S&P 500 — which are used to hedge losses in the index over the coming 12 months — haven't been this cheap since 2008, according to Bank of America.

Given the high equity-market valuations and the lingering threat of a recession, it's"sensible" for investors to buy the contracts at the current low prices to guard against the risk of a selloff, BofA strategists led by Benjamin Bowler wrote in a research note.

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