The recent market crash which has led to as much as a 47% drop in the value of the S&P500 index has made some of us wonder if there is a cost effective way for us to hedge our retirement portfolios against such a drastic loss. Our objective is to investigate empirically the tradeoffs that will arise from using a protective put strategy for hedging retirement portfolios over an investment horizon that is long enough to be comparable to the average holding period for retirement portfolios
Doyle, Barry; Mefford, Robert; and Tay, Nicholas, "Black Swans and Retirement Strategies: Is “Buy and Hold Best”?" (2010). Finance. Paper 1.