Why Hedging Is the Answer for Portfolios | Can Hedgers Buy Markets Lower?

Broken Pie Chart

Why Hedging Is the Answer for Portfolios | Can Hedgers Buy Markets Lower?

Show Summary:

Rather than try to time markets or worry about whether there is a selloff around the corner, look to stay invested but be hedged. But what is hedged equity? What are the benefits for investors who may be barraged by various predictions and news? How do hedged equity strategies work? All this and more plus some new recommendations.

Eliminate the need to time markets

Reduce fear- but stay invested

Who is hedged equity for?

How to look for more growth especially near or in retirement

3 main phases for investors accumulation, base maximization, and distribution

What is the hedgers opportunity?

What is the cost of hedging?

How the short duration fixed income (or other income producing pieces) reduces cost

How do each of the components move within a portfolio

Comparing hedged equity to the 60/40 portfolio

Will treasuries be used in lieu of corporate bonds as a funding source?

What are the main risks for bonds?

How bonds move closer to par value at maturity baring defaults

What is the current default rate for high yield bonds?

Mentioned in this Episode:

Debating what a recession is https://podcasts.apple.com/us/podcast/debating-what-a-recession-is-someone-is-wrong/id1432836154?i=1000571629306

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3Je7xqa

Contact Derek [e-mail]