Thursday, January 17, 2008

Five Hedging techniques to protect against a declining market

With all the ugliness in the market out there, we thought a post on hedging might be appropriate.

Scott Rothbort wrote a great article at thestreet.com which details 5 hedging techniques:
  • Pairing
  • Short against the box
  • Exchange-traded funds (ETFs)
  • Futures
  • Options
We think Scott left off an important one - cash! Unless you're running a billion-dollar hedge fund, you can easily raise cash by reducing your positions.

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