PT - JOURNAL ARTICLE AU - Tom Arnold AU - Terry D. Nixon TI - Negative Beta Equity Securities as Insurance AID - 10.3905/jwm.2021.1.156 DP - 2022 Jan 31 TA - The Journal of Wealth Management PG - 69--73 VI - 24 IP - 4 4099 - https://pm-research.com/content/24/4/69.short 4100 - https://pm-research.com/content/24/4/69.full AB - Theoretically, an equity security with a negative CAPM beta should behave like portfolio insurance in the sense that the security provides a positive return during a market downturn. However, equity securities with negative betas are relatively rare and simply determining that an equity security exhibits a negative beta is not enough for determining if the negative beta equity security will perform in the desired manner. Negative betas can, at times, be attributed to causes that diminish those securities' usefulness as insurance. Some of these causes are explored in this article.