With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options. Topics covered include: David's business and investment philosophy How bond funds have performed in 2021 Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management Company How to invest in China … [Read more...]
311 Plus: Option Strategies, Volatility Investing, and Hedging Stock Portfolios
Plus Episode 311 shares the audio from a new video on how call and put options work, how put options can be used to protect against portfolio losses, options-based ETFs and how to go long and short volatility. … [Read more...]
300 Plus: Buying Tail Risk Protection, Active Management, and Trading Oil Sentiment
In Plus episode 300, we review the Cambria Tail Risk ETF (TAIL) to buying puts directly and consider the overall cost of a stock portfolio hedging strategy. We review the performance disparity between stocks as it relates to the pandemic and whether now is the time to shifts some assets to active management strategies. Finally, we explore a member's strategy for trading in and out of the DB Energy ETF (DBE) … [Read more...]
268: How To Better Manage Risk
What are the three steps to better manage risk and get what you really want. In this episode you’ll learn: Why goods and services that lessen risk tend to cost more.What is the three-step process for assessing and managing risk.Why defining the risk-free option or asset is critical to managing risk.Why immediate annuities are the retirement risk-free option rather than a conservative investment portfolio.What are the two types of risk and how do we mitigate them.What is the … [Read more...]
MNY141 Plus: Currency Hedging, Closed End Bank Loan Funds and Investing In Economic Sectors
This week January 21, 2017 on Money For the Rest of Us Plus we look at the risks of investing in bank loans via closed end funds. What does it mean to hedge currency risk and is investing in economic sectors likes technology, healthcare, etc. a viable strategy. … [Read more...]
MNY123 Plus: Regret Aversion, Interest Rates Hikes and Hedging Portfolios
This week on Money For the Rest of Us Plus we revisit the process to assist investors to transition from one portfolio structure to another, including if one is holding cash. The key is to overcome regret aversion and loss aversion. We look at how to do that. We also look at the fear of rising interest rates and why is it so great and would the outcomes be that bad. Finally, we look at the cost of hedging a stock portfolio as a member evaluates a hedge fund strategy does exactly … [Read more...]
MNY092 Plus: Hedges and Timing An Asset Allocation Shift
This week on Money For the Rest of Us Plus I answer a member's questions regarding using bonds as a hedge against a market downturn. I also answer a member question regarding the timing of a shift to a new long-term asset allocation. The episode length is 16 minutes. … [Read more...]
MNY046 Plus: Survey Responses, Currency Hedging and Country Ranking
In this week's Money For the Rest of Us Plus episode, I discuss a variety of topics including: Changes being made to the Hub based on Charter Member feedback. Why I don't generally hedge my international equity exposure. What factors do I consider when overweighting a country in my portfolio. The episode length is 16 minutes. … [Read more...]
