Opinion: Put a ‘collar’ on your stocks to protect yourself from a market correction

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The S&P 500 SPX, +0.15% is within 3% of a record set in early September, and with the benchmark index doubling since its pandemic low in February 2020, the risk of a correction is growing. Some investors are wondering what steps they can take to protect their positions and portfolios, without trying to time the market by selling before it drops and buying back in before a recovery is in full swing. There are ways for investors to hedge their positions and protect their profits. The term “hedging” goes back to medieval times when property owners would plant hedges around their home like a fence for protection. Most investors should stay invested for the long haul and ride out periods of inevitable market volatility. If they try to time the market, they tend to return to the market too late, and that erodes long-term returns. At some point, we will experience another economic recession, which are usually accomp
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