for questions that relate to hedging. A hedge is an investment position intended to offset potential losses/gains.
2
votes
1answer
64 views
Insider trading of a linked security like an ETF your company has a heavy weighting in
Let's say you work for Apple, Inc as a middle class employee. This is a large publicly traded company. By the very nature of your employment there will be limited times that one can make purchases and ...
1
vote
2answers
96 views
How can one offset exposure created by real-estate purchase?
Is there any viable way to offset exposure introduced by buying a real-estate (house/land)? By "way to offset" I mean financial instruments (like derivatives) that you can buy to decrease the risk of ...
7
votes
4answers
232 views
How can one hedge against property price change when buying a home?
Let's say I want to buy a home, with intent to sell it down the road ( < 10 years). If I want to minimize my exposure to market fluctuation, what would be the best way to accomplish that?
I ...
5
votes
2answers
746 views
Effect of a “Bond Bubble” Bursting?
Lately I've heard increasing talk that the next big bubble that will burst in the US is the "Bond Bubble". Consider this recent Wall Street Journal article. Excerpt:
But in the same investment ...
1
vote
4answers
240 views
ETF + Hedge ETF = guaranteed profit?
If I own an ETF (say based on the S&P 500) and also a short on a correlated index (e.g. SH), does that mean I am guaranteed to win in either extreme market condition? I simply sell the one that is ...
0
votes
1answer
527 views
Hedging an accumulator from the sell side?
How does the seller of an accumulator (whether it's agricultural, equity, fx) capture profit? I understand that whenever the accumulator is in a "double up" period, they capture the difference between ...
2
votes
2answers
94 views
Hedging against rising oil and gas prices for private households?
Inspired by this article Hedging Against Rising Heating Oil Prices using Heating Oil Futures, I wonder whether hedging against rising oil and gas prices makes sense for private households, too? If so, ...
1
vote
0answers
63 views
Picking a hedge option
In picking a hedge option, how important is it to buy one where the implied volatility isn't much higher than actual market volatility? Should one look at the option chain and find those options ...
1
vote
2answers
493 views
How do you hedge against student loans?
How do you hedge against student loans? I know people were able to hedge against the housing loans that busted so how do you do the same with student loans?
5
votes
2answers
95 views
How should I use the Volatility Index?
I do have a basic understanding of the Volatility Index (Chicago Board Options Exchange Market Volatility Index), but I wasn't sure how this index is best used by an individual, average investor.
...
1
vote
2answers
35 views
How to hedge against specific asset classes at low cost
I only do passive investment on index ETFs etc. I'm quite happy with that, but sometimes I want to hedge against specific asset classes in the mix.
For example, let's say I do want to keep buying ...
1
vote
2answers
199 views
If I invest in securities denominated in a foreign currency, should I hedge my currency risk?
If I live in the US and most of my expenses are in US Dollars, I consider the US dollar to be my base currency and look at the performance of my portfolio on a US Dollar basis.
If I invest in a fund ...
6
votes
4answers
307 views
Is short selling a good hedging strategy during overzealous market conditions?
As the stock market keeps increasing, I'm more and more interested in short selling as a strategy to hedge risk and make some money.
History has shown that anything that goes up, must come down. The ...
2
votes
1answer
305 views
Are there ways to hedge against a rise in interest rates, other than refinancing my loan?
I was wondering what options do I have available to hedge against the inevitable/eventual rise of US interest rates?
One obvious action is to refinance my loan at the current interest rate. However ...
4
votes
3answers
359 views
High Leverage Inflation Hedges for Personal Investors
I'm looking for an investment that will appreciate against inflation in the US Dollar. I want to be leveraged 10:1 or more. For the sake of argument, let's say I have only $10,000 to invest, which ...
14
votes
4answers
417 views
Options revisited: Gold fever
In my recent question, I asked how to operate with options. Now I would like to see whether I learned anything.
At this moment, Gold is rising. Fast. As I see it, in the future, the gold price has to ...
32
votes
9answers
2k views
Are you preparing for a possible dollar (USD) collapse? (How?)
After the last crisis it was easy for many to look back and say all the signs were there to indicate an impending crisis. Super-low interest rates from the FED, no down-payment loans, interest-only ...
