Buy 2 Enhanced Yield Hedges And Sleep Like A Baby

The current bull rally in equities, driven by massive AI CapEx, feels increasingly late-cycle and vulnerable to a correction. I see parallels between today's AI investment surge and past capital misallocations, such as the fiber-optic boom that failed to materialize due to the wildly inaccurate internet demand forecasts. Despite favoring high-quality, resilient, dividend-focused assets like infrastructure and internally managed BDCs (e.g., TRIN), equity risk remains pervasive. I advocate allocating a portfolio slice to yield-producing, cash-like holdings with low or negative beta to maintain dry powder for future opportunities.

If this is not the right time to think about hedges, then I don't know what it is. Think of it. The overall equity market ( SPY ) is in one of its strongest bull rallies