Money and Finance Because you have to save money to spend it on new paintball stuff!

Thread Tools
Old 09-17-2017, 01:43 PM   #1 (permalink)
Old gear!
Join Date: Oct 2007
Location: Dallas

Hedge recommendations?

So, I'm a bit wary of the current bull market, and between the behavior of the housing market and the length of the current upward run, I want to hedge my fledgling portfolio with a proper hedge fund, as opposed to a "hedge" that's really just another speculative fund. Something like Artemis Capital, where, if the market tanks, it pays out to offset losses in other sectors. I'm thinking "Big Short" type scenario. (I understand people have varying opinions on the overall direction and stability of the market... Please let's start on topic for what is available for what I want, as opposed to whether it's a valid concern.)

Problem is, I'm working with thousands, not tens or hundreds of thousands. Anyone know of an ETF lined up to counteract strong downward moves? I'm partial to Vanguard and Schwab, due to their management fees, but our 401k is through Trans America with a lot of vanguard options available.

700 shipped Possibly pending member applying for loan
Only on MCB...
flyweightnate is online now   Reply With Quote
Old 09-18-2017, 09:29 AM   #2 (permalink)
I Am The Admin
Painthappy's Avatar
Join Date: Mar 2006
Location: New Boston, NH
Send a message via AIM to Painthappy

Fan of EMR
The best and only true way to hedge is to options trade.

You buy a "put" on the SPY ETF, enough to cover your portfolio. If the market tanks, you'll only loose a little money. If the market stays even, you lose the most. If the market goes up, you have the gains in your regular account that makes up for the few hundred dollars you used on the put.

If you're only talking thousands and not hundreds of thousands, you're better off just dumping into cash until you feel better, but usually that never works as people tend to always do the opposite. The wait for the market to go down, it goes down far enough, they dump into cash and won't get back into the market until it's gone up high enough so they missed out on all those gains.

Another suggestion:

RYURX, RYTPX, PSSAX: Mutual Funds to Short the S&P 500 | Investopedia

You purchase a mutual fund that is basically betting that the S&P will go down. The market goes down, you make money.

I've had good luck and bad betting. Because it is just betting.

Yes, it's all high, and it all hinges on tax reform right now I feel. Tax reform = good market. No tax reform, she will tank.
Follow me on my blog For Non-Paintball Banter
Painthappy is offline   Reply With Quote
Old 09-18-2017, 09:54 AM   #3 (permalink)
Moderating in Moderation
oldschool's Avatar
Join Date: Mar 2006
Location: My own private Idaho

Fan of EMR
privet would be a good choice
Its all peaches & sunshine baby, peaches & sunshine..
Obsequious, purple, and clairvoyant
One of the two proud members left - D FLT
Politically, Socially and Aerodynamically Incorrect
Everything I have ever loved is immoral or illegal
Vir sapit qui pauca loquitur.
stewart potter common sense, elephant and duck tests
Force this into a gaussian distributed parabolic curve!
oldschool is offline   Reply With Quote
Old 09-20-2017, 08:20 PM   #4 (permalink)
Old gear!
Join Date: Oct 2007
Location: Dallas

Interesting options. Thanks guys.

And by that, I mean painthappy. I'm not so good at keeping green stuff alive so the privet would be worthless.
700 shipped Possibly pending member applying for loan
Only on MCB...
flyweightnate is online now   Reply With Quote
Old 09-20-2017, 08:23 PM   #5 (permalink)
MCB Member
Grendel's Avatar
Join Date: Apr 2006
Location: Northbridge [Whitinsville], MA

Land, my land investments over the long run have appreciated better then any other investment and you have something "concrete".

"Rather fail with honor than succeed by fraud." -Sophocles

My Pyre #PY008 RF Oak Grendel's Feedback on MCB Pyre Serial Number List
Grendel is offline   Reply With Quote
Reply » General » Off-Topic » Money and Finance

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Forum Jump

All times are GMT -4. The time now is 08:28 PM.

Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2018, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO
© MCB Network LLC