This week’s podcast builds 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.
Transparency note: As a result of our public endorsement, Peak Prosperity has a commercial relationship with New Harbor. The details of this relationship are clearly presented in writing during the referral process — but the punchline is, our relationship does NOT result in any increased fees to those who become clients.
If after listening to this podcast, you find yourself interested in connecting with Mike, John, and the rest of their team to learn more about their advisory services, please use the form here to do so.
cheers,
Adam
It should go without saying: this discussion should NOT be construed as individual financial advice by those listening to it. The content should be taken as informational and educational in nature only. Investment advice must be tailored to your specific personal situation (which we and our guests are obviously unaware of) and should be obtained directly from a financial adviser you trust. Before acting on any of the statements made in this podcast, we advise you do just that.
Click the play button below to listen to my interview with New Harbor Financial (53m:34s):