This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Managing the Futures

NEW YORK ( TheStreet) -- Given current market conditions, investors would be well served looking for further diversification opportunities. One such opportunity is with managed futures.

Managed futures is an alternative investment class in which investors allocate funds into various trading programs run by Commodity Trading Advisors. These advisors seek potential profit opportunities in various futures markets, utilizing multiple strategies such as long/short strategies, option writing and spread trading, among others.

Why can this be a viable strategy?

Stocks have continued to move higher, with seemingly no end to the rally in sight. In fact, the benchmark S&P 500 index has covered a lot of ground very quickly in recent weeks moving from the 1640 area to Monday's highs in the 1762 neighborhood -- all in a span of 19 days.

The Nasdaq has seen similar price action covering a vast amount of upside very quickly. Shares of high flyers such as Google (GOOG) and Facebook (FB) seem to be strengthening every day. Many would argue that valuations are getting a bit heated at current levels and the recent euphoria seen in stocks could be cause for concern.

John Hussman of Hussman Funds recently gave his thoughts on the market, noting, "If you picture a small child throwing a stone upward and out over the edge of the Grand Canyon, you'll get a general idea of the market trajectory that we expect over the completion of this cycle."

No one can see the future. No one knows exactly how markets will react once the Federal Reserve begins removing the punchbowl. The best investors can do is try to play the odds as much as possible. We are currently in the fifth year of an aging bull. Although the market could continue to go up, cashing some chips in at current levels may not be a bad idea.

At the very least, we feel that it is important to position your portfolio for further upside but also a downside turn in markets if or when it materializes. We feel that proper diversification is the key to long-term investing success.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.99 0.00%
FB $99.54 0.00%
GOOG $678.11 0.00%
TSLA $148.25 0.00%
YHOO $26.82 0.00%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs