Most Overlooked Benefit from Portfolio Hedging Strategies
Broken Pie Chart
English - February 24, 2019 20:20 - 24 minutes - 22 MB - ★★★★★ - 16 ratingsInvesting Business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: How Can Investors Hedge Downside Risks on Single Stocks?
In this episode Derek Moore explains the one benefit most investors overlook as a very important benefit of using a hedged equity strategy. The benefit of reinvesting avoided losses or hedging profits to pick up more shares while markets are lower.
Key Takeaways:
• If you lose this much, how much is needed to get back to breakeven level? • Benefits of using a hedged equity strategy • How hedged equity can take out some guesswork on timing the market. • Explaining how monetizing hedging profits or avoided losses can buy more shares at market lows. • Expected returns depending on annual market return. • How avoided losses or hedging profits can bee reinvested at lower levels • What are the historical occurrences of market returns between certain ranges? • How reinvesting hedging profits potentially allows for more upside capture in market rebounds.
Mentioned in this Episode:
Jeremy Seigel “Stocks for the Long Run” book https://amzn.to/2GVctSC
Robert Shiller “Irrational Exuberance” https://amzn.to/2BNQGJf
Broken Pie Chart Book by Derek Moore https://amzn.to/2COXRAS
Podcast on hedging for protection https://razorwealth.com/why-investors-need-a-protective-hedged-equity-strategy/