Most Overlooked Benefit from Portfolio Hedging Strategies

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/