Price of hedges during uncertain times

Buying expensive insurance is just like buying any other overpriced asset…a path to the permanent impairment of capital. Rather than wasting money on expensive insurance, holding a larger cash balance makes sense. It preserves the dry powder for times when you want to deploy capital, and limits the downside.

James Montier GMO

Montier makes a a good point that in an uncertain time, the best course of action is to hold cash.