Bloomberg Surveillance · Friday, August 14, 2026
Julian Emanuel advises investors to consider hedging strategies due to current market complacency, despite his long-term bullish view. He suggests options like increasing cash positions, owning optionality, or hedging with index protection, noting that financial conditions are at their loosest this century, which could be a precursor to volatility.
“So there's sort of three choices here. You know, essentially, you can let your cash position build that damp is a portfolio.”
“You can own optionality. The vis well, where are we. Now fourteen and fourteen and. Change is unbelievably low. It is under the hood, it's not. It's not under the hood. It's not because you have this negative beta effect, and you've had, you know, just like enormous moves in individual stocks, both up and down and up and down essentially in the same couple of months. And so for us, you know, index protection is very inexpensive.”
“Here. You get the Fed, you get the midterms, you get Iran, and frankly, you get given the fact that a lot of people are viewing this earning seasons as good as It gets, and we wouldn't argue with that. The thought might be that that would prompt a correction. Studies show the work that we've done shows that it prompts more volatility. It doesn't prompt the end of the bowl, but it does prompt this concern.”