Alright - I haven't ever hedged my portfolio, how do I learn to?
So i'm probably like most of you... I buy some stocks and ETFs here and there. Not with much analysis, more so trying to follow trends I believe in. But inevitably, I don't sell when I've could have taken good gains and my portfolio comes screaming back down in value, unhedged. I don't really trade options except the occasional long put or call.
So how do I go about becoming more educated on hedging to help reduce the impact of these big drawdowns? Especially as we are in a stagflation/early bouts of a recession...
Any book, blogs, etc I should study?
I would ask why you feel you need to hedge? Personally in my PA I just want beta. Hedging doesn’t create value, it just reduces risk. So it’s not necessarily a good strategy - depending on your goals
My hedge is cash, or puts. Keeping it simple
Pariatur aspernatur aut deleniti. Autem ut harum totam fugiat.
Voluptatum corporis eius qui nobis ipsa aut architecto. Veniam laboriosam vitae delectus inventore. Nobis id ratione modi earum sed sunt voluptatem. Aspernatur aspernatur voluptatem nisi eius ipsam esse vel. Et optio officiis provident velit officia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...