Tag Archives: hedging

  • Blog
    Oleksii Sergieiev, Dreamstime

    For Heaven’s Sake: Hedge!

    If you're not positioned defensively by now, you're nuts
    by Adam Taggart

    Friday, May 1, 2015, 2:58 AM

    15

    Last fall, I wrote an article titled Defying Gravity that warned of the absurd price levels that stocks and bonds had risen to. Less than a month later, the stock market abruptly dropped by 7%. Those who didn't seek safety in advance were left licking their wounds, panicked not knowing if the painful down-draft was over.

    So here we are roughly six months later, and the same warning bells are ringing — just louder this time.

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  • Blog

    Gravity Returns – The Market Drops Nearly 5% in 3 Days

    Years-long trends are finally breaking
    by Adam Taggart

    Monday, October 13, 2014, 11:14 PM

    8

    A month ago, in an analysis titled Defying Gravity, I wrote about the unsustainable state of the stock market's high prices.

    In it, I noted how the stock market had risen for an aberrantly-long time time without a correction, and that it hadn't even tested its 200-daily moving average price once since the beginning of 2012:

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  • Podcast

    New Harbor: Hedging 101

    How to defend against a market correction
    by Adam Taggart

    Saturday, September 13, 2014, 7:02 PM

    2

    This week's podcast build on our recent report on hedging, driller deeper into how the technique can be used to offer protection against falling asset prices.

    There are numerous ways to hedge, which vary in cost and complexity — with several being quite simple and low-cost (such as building cash or employing stops). But many investors don't practice them, mostly out of unfamiliarity. Which is a shame, as often a small degree of defensive planning can provide substantial avoidance of large losses. (In fact, our recent poll has discovered that one of the most common and cheapest methods of hedging — setting stops —  is hardly used by PeakProsperity's readership.)

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  • Blog
    bochimsang12/Shutterstock

    Defying Gravity

    The case for hedging against a market downturn
    by Adam Taggart

    Wednesday, September 10, 2014, 4:05 AM

    7

    Today's markets exist in an Oz-like, fantasy world. For 5 years now, stock and bond prices have risen like Dorothy's balloon, without so much as a puff of downdraft to spoil the fun.

    Everybody likes higher prices, so let's have them always go up! Forever!

    Whether that can happen is a topic of current hot debate, though few think corrections have been permanently banished from the financial markets.

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  • Insider
    Dreamstime

    How to Hedge Against A Market Correction

    Reducing the vulnerability of your portfolio
    by Adam Taggart

    Wednesday, September 10, 2014, 4:04 AM

    9

    Executive Summary

    • What you need to know about hedging with
      • Stops
      • Inverse and leveraged ETFs
      • Shorts
      • Options
      • Futures
    • Deciding which hedging instruments are appropriate for your portfolio

    If you have not yet read Part 1: Hedge, Dammit! available free to all readers, please click here to read it first.

    OK – hedging sounds prudent. But how do you do it?

    Our focus here in Part 2 of this report is to cover the most common vehicles used in hedging strategies. Each one merits its own dedicated report (a series we'll likely create in the future) to truly understand how and when to best deploy, so this report will focus on providing you with a good introduction to each, with guidance on how to further explore the ones that strike you as appropriate for your needs and personal risk tolerance.

    Before continuing further though, let me make a few things absolutely clear. This is NOT personal financial advice. This material is for educational purposes only, and as an aid for you to discuss these options more intelligently with your professional financial adviser(s) before taking any action. (If you do not have a financial adviser or do not feel comfortable with your current adviser's expertise with these hedging vehicles, we'll be happy to refer you to our endorsed adviser)

    Suffice it to say, everything discussed in this report (even the % cash component mentioned in Part 1) should be reviewed with your financial adviser before taking any action. Am I being excessively repetitive here in order to drive this point home? Good…

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