New Harbor: Hedging 101

The following video was published by ChrisMartensondotcom on Sep 15, 2014
This week’s podcast build on our recent report on hedging, driller deeper into how the technique can be used to offer protection against falling asset prices.
There are numerous ways to hedge, which vary in cost and complexity — with several being quite simple and low-cost (such as building cash or employing stops). But many investors don’t practice them, mostly out of unfamiliarity. Which is a shame, as often a small degree of defensive planning can provide substantial avoidance of large losses. (In fact, our recent poll has discovered that one of the most common and cheapest methods of hedging — setting stops — is hardly used by PeakProsperity’s readership.)
In this week’s discussion, we review the pros and cons of the most popular hedging techniques, as well as when and for whom they are appropriate to consider. Those unfamiliar or not actively hedging currently will benefit most from listening and determining which may be worth considering discussing with a professional financial adviser.