TRENDING

MASTER THE ART OF HEDGING

Written by: Chris Stanford

Publishing date: 4/22/2022

THE IMPORTANCE OF HEDGING

THE IMPORTANCE OF HEDGING

Historically US equities have been extremely resilient. As a result, investors have been conditioned to have long-only portfolio exposure. Throughout my 14-year investing career, I have survived unprecedented periods of market volatility. I have lasted the test of time solely as a result of my emphasis on hedging. Over the long run, nobody is going to be able to call every top and bottom. If you are in the game long enough you are bound to be wrong in a big way more than once. The great traders just learn how to structure their ideas to protect against the worst-case scenarios. Hedging allows investors to be wrong. When hedging is properly implemented, success and failure are no longer binary.

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