Series 7 - General Securities Representative Exam

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Jeremy, a well capitalized investor with broad experience and diversification, senses a stock market downturn and a rough investment environment over the next 5 years. He doesn't want to even think about the market and doesn't need liquidity for 5 -7 years. Which of the following might be suitable for this perspective?

Buy Puts on a Stock Index
Short a Basket of ETFs
Precious Metals Mining DPP
Sell Puts on Stocks


This is a situation where a DPP on precious metal mining makes sense. They are passive investments and have long holding periods until redemption (can be 5 to 7 years). Buying puts will have too much volatility and he doesn't want to think about the market. Shorting a basket of ETFs would be time consuming and require margin management. Selling puts on stocks is bullish