Editor's Note: With the markets still showing plenty of volatility, we want to make sure you're prepared for any dramatic swings. So we're rehashing our top bear market hedging strategies to help you protect your assets. - Ryan Fitzwater, Associate Publisher Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Hedges are a good thing, but they are often misunderstood. The truth is... hedges lose the majority of the time, but that's because they're typically used as a form of insurance - just like your homeowners policy. When you pay for your insurance policy each year, you consider it money well spent. You should think about hedges the same way. They're the cost of doing business. If you have nothing to hedge against, don't use a hedge. In this article, I share a bunch of different ways you can hedge, depending on your risk tolerance and how much capital you have available. Let's get into my favorite hedge: the tail risk hedge. |
No comments:
Post a Comment