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

By Derek Moore

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.

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Topics Include:

  • 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:

Buy and Hedge Strategy Information 

Derek Moore’s book “Broken Pie Chart” 

Jay Pestrichelli Book “Buy and Hedge” 

Debating what a recession is