New Harbor Financial is maintaining approximately 40% equity allocation for most client accounts but has added out-of-the-money put options as tail risk hedge covering 15% of equity exposure with strike price about 5.5% below current market (S&P 500 at 5200) for approximately $120 cost per $50,000 of equity, using the benefits of currently low VIX to purchase inexpensive insurance.

factualpending

Speaker

John Lara

Evidence Quote

if you think about this as an insurance policy there's a there's a deductible of about five and a half percent that uh folks would need to pay in terms of uh having some downside Market action but beyond that these puts would kick in and take off the table any further declines for roughly about 15% of our our client um Equity exposure

Source

What If A Coming Recession & Bear Market Are The LEAST Of Our Worries? | John RubinoAdam Taggart | Thoughtful Money®
Created: 8/10/2026, 11:15:06 PM

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