The prospect of a lost decade is a bit scary for younger investors because of the sequence of return risk. Given that a lost decade is a reasonable possibility I’ve looked some into premium income funds. Funds that sell covered calls and puts on the indexes that trade appreciation for income. I’m curious what your thoughts are on these.
On some of the backtests and research I’ve looked at, it looks like they outperform over flat periods since they can still make money by selling options.
The prospect of a lost decade is a bit scary for younger investors because of the sequence of return risk. Given that a lost decade is a reasonable possibility I’ve looked some into premium income funds. Funds that sell covered calls and puts on the indexes that trade appreciation for income. I’m curious what your thoughts are on these.
On some of the backtests and research I’ve looked at, it looks like they outperform over flat periods since they can still make money by selling options.
Really great article! I always love your stuff.
What will happen to my stocks if the currency crashes? Will they get switched to a different currency?