Hacker News new | ask | show | jobs
by PublicEnemy111 3957 days ago
I was pretty far into building a platform for investors to buy portfolio insurance, then I read about Vest this morning(http://techcrunch.com/2015/08/18/hardware-demo-day/). It sucks to see I'm not the first, but their website reveals the idea still has a long way to go before normal investors adopt it. Most investors don't feel qualified to pick stocks for their own portfolio, so how will they know what type of insurance they need? What happens when this idea scales and option prices become far more expensive as a result? Option liquidity(or lack thereof) is the reason portfolio insurance in the 80's turned to futures for protection. It's a good idea, but I suspect it will take a few iterations :)