Most Overlooked Benefit from Portfolio Hedging Strategies
Broken Pie Chart · Broken Pie Chart
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Show Notes
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/