Investors Turn to Options to Minimize Risk

The traditional use of options is to transfer or reduce risk, rather than to take risks to amplify returns. That’s worth remembering now.

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Where now for the markets? The New York Stock Exchange last month.Photo: BRENDAN MCDERMID/REUTERS

Global pandemics. Geopolitical tensions. Whipsawing energy markets and the soaring cost of gold. Inflation, interest rates, bank failures…

The world today feels as if it’s awash in risks that have the potential to wreak havoc on your portfolio. Little wonder that many investors began 2023 by asking themselves a version of Dirty Harry’s question: “Do I feel lucky?”

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Next in Journal Reports: Investing Monthly

Journal Reports: Investing Monthly
A New Roster of Top Stock-Fund Managers
By Suzanne McGee
April 9, 2023 at 12:00 PM ET

In a rough market, different names emerge among winning stock-pickers. But only 27 of 1,257 funds had 12-month gains.

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