[tubebender]

"...
We already have more scandals than we do people to investigate them. The investment portfolios of insurance companies are just yet another ticking bomb. Where are they going to get the cash needed for reserves and claims? It is a house of cards in a wind storm."

I have a dilemma...I have two insurance stocks that I have zero basis in. They were mutual companies (MFC and Pru) that went public and I received this stock as a policy holder. I beleive any sale will trigger capital gains on the full amount and I live in Calif so this will be about 40%. They have started to slide in the last few days and this talk about insurance companies makes sense as their investment opportunities are slim.

[Soren]

You might consider buying out-of-the-money put options. You will pay a premium, but then you will be protected on the downside below the option's strike price. If the stock does not fall, the options expire worthless. You can think of the option price as an insurance premium that you pay for downside protection. Options expire after a certain period, so you would need to renew them if you wanted continued protection. This would be a strategy to use if you wanted to get by a rough patch in the market. If you think the long term prospects are bleak, then I would sell, especially if you have any capital losses you can offset the gains against. Just my opinion.

[arete]

I have a dilemma...

Yes you do.

Richard W.