Is there any insurance for stock market melt down.?

Answer 1

technically no, but creatively, yes.

I say technically because there is no such thing as stock market insurance as there is life, auto or health insurance.

Creatively, you just have to think of other ways to not lose it such as a savings account or money market. That gives you a guaranty of no loss in the market (since you are not in the market), but you also dont have the possibility of gains. There are variable annuities that have annual reset riders that lock in gains annually. But the fees are sometimes high. There is also market indexed annuities. They have market gains minus fees & spreads & no losses also, just interest earned. They have fees also, but more layered so you dont see them.

Answer 2

Yes you can create your own insurance product to protect yourself from stock market melt down. If you are long in the cash (secondary) market then you can buy put options in a calculated way so as to hedge your long position with the right number of put contracts. You have to be precise with your calculation with respect to volatality of your holding and the put option that you are buying and the duration you wish to hold on to the options. It is simple once you start doing it.

Answer 3

You're looking for a guarantee that your stocks will only go up? Sorry, it doesn't work like that.

The only way to guarantee you won't get burned in the stock market is not to buy stocks. If you want safe investments, go look at some gov't bonds, CDs or FDIC insured savings accounts.

Answer 4

diversify to reduce risk

consider bonds (treasury, municipal)
Mutual Funds
try to keep a balance of Blue Chip, Tech stocks and international

And remember, The only gurantee in Life is dying

Answer 5

There is insurance for everything.
It is much easier however to use "stop loss" orders. Acomplishes the same thing,

Answer 6

I guarantee that someone will prosper from one.

Answer 7

no