No Hedges? No Problem for U.S. Stock Traders Used to Resilience


Jeff Sica was quoted in Bloomberg. To read the full article, please click here. 

“Investors have become completely disengaged with the process of protecting their downside. This market has been so good for so long, people don’t think they need to hedge. There’s an overconfident, laissez-faire attitude creeping in.”

Options traders unfazed by the selloff are in fact unprepared, according to Sica. While the market has quickly healed itself in the past, its next significant pullback will be “violent,” he said.

“It works until it doesn’t anymore. This market has fostered such exorbitant amounts of complacency. It could be an absolute disaster.”


Jeffrey C. Sica is the President and Chief Investment Officer of Sica Wealth Management, LLC (“SWM”), an SEC registered investment adviser that maintains a principal place of business in the State of New Jersey. The information presented herein may not be suitable for all investors, and no portion of this commentary is to be construed as a solicitation to buy or sell a security, or the rendering of personalized investment, tax or legal advice. Past performance does not guarantee future results, as there can be no assurance the views and opinions expressed herein will come to pass. Investing involves risk, including the potential loss of principal. Please consult a financial professional prior to investing.