not sure why no one is mentioning buying year long treasury, or 3 month or one month.. it eats like a fraction of margin, so you can still play with like 99% of it still and at least pull in some from treasury offsetting inflation. I would do one year as most likely you don't have a big portfolio and you might be paying to buy them so to lessen costs and simplicity.. 1 or 6 month treasury. I would do 1 month far far OTM spreads on ES / NQ , like far out... like 25+%.. you would still make some money. this is a conservative bet in my eyes.. some it might not be for risk to reward, but history chart says yes. there is no other conservative play in my knowledge then far far OTM puts / calls. all others plays run danger of sharp spikes down or up, which happen quite frequently, which then calls into management skills. I've come to the conclusion the best system for returns is what the wealthiest people on the planet do.. long stock.. of course they run concentrated single stock which makes them silly wealthy and with oversized above average return, but it can be mirrored to an index.. it's a 99% surefire winning system that requires no input.. reinvest your winnings/dividends into long stock.. you really can't lose unless you believe the history would be any different from the entire past.
Long stock or long an index is great over the long haul, but only if you don't mind drawdowns that can exceed 50%.
Wondering what the catch is with this particular strategy of Meb Faber's (specifically the 60% Put Write and 40% tail risk strategy in which backtests resulted in a Max Drawdown of 8.30% and CAGR of 7.30%) Wondering how many minutes each month this 60/40 strategywould require to implement, and how much capital would be required. Also, it's unclear that what percentage of the Talk Risk capital would be actually deployed each month for buying the 5% out of the money puts. I'm thinking 1% of the 40% or 0.4% of total assets under manage ment. Also what are the catches to this strategy? Link to PDF pasted below: https://www.cambriainvestments.com/wp-content/uploads/2017/10/TAIL-Final-10.03.17-B.pdf