Hedging Money against U.S stock Crash – The Ultimate Hedge
This video gives you a clear idea of how the top billionaires and fund managers are hedging their net worth against the U.S stock market crash.
Hedge fund vs. S&P 500
Starts at 0:38
Big-name investors have recently been hedging against a market recession. They are devising a small portion of their portfolio towards this. This way, if a crash occurs, you can sell this position to purchase stocks for long-term gains.
Example of what Bill Ackman has done: 2:39
When you understand how to short the bond market, it is a low risk and can have high rewards if you are right. Bill Ackman uses bond derivatives similar to options contracts, but for bonds.
The Second Strategy (long-short equity approach)
This idea is to go long and short on companies in the same sector known as the spread.
Chamath Palihapitiya uses this approach for a clearer picture. Click the time below. He has been successfully playing the spread against the tech sector. It starts at 5:31
Chamath has also used this in the financial payment sector. I believe he sees the future changing in how payments and transactions occur. To get this in more detail, click the time below; it is worth watching. Also, he may have something here. Master card vs. cryptocurrencies It starts at 7:49
Cathie wood has also been using this Strategy for the companies disrupted by innovation. Her example is Tesla vs. GM/Ford clicking on time below. Starts at 11.21
The Third Strategy Is going long on international stocks.
This section talks about investing in other currencies (China). While the U.S. dollar goes down, other currencies will rise. Ray Dalio is investing in this opportunity along with warren buffet and Charlie Munger. Check the link below to understand their strategies fully. It starts at: 12.53
The fourth Strategy is to hold some cash.
This section will give you an idea of why it is essential to hold a percentage of cash in your portfolio. Learn why and how much. Click the time below. It starts at 13:46
I hope this video will provide you with some exciting ways to invest your money in light of a crash and open you to the different ways that others are investing in the current situation. Overall, you decide to devise your portfolio with your learned information. So my fellow investors, Happy Investing.