4 ms·

What’s the hedge for this bubble? Cause I’ll be honest looks like most if not all assets classes are going to take a hammering. There seems to be no safe ports

What’s the hedge for this bubble? Cause I’ll be honest looks like most if not all assets classes are going to take a hammering. There seems to be no safe ports available.

m0llusk 5y ago
Real wealth is the hedge. Organizations which through there operations generate greater value than they consume. Lots of these are doing badly right now, but they have the potential to endure and provide small but steady payouts during a correction when all the big players get called on their bets.
hashimotonomora 5y ago
Do something of intrinsic value.
mdm12 5y ago
To go with your shipping metaphor, a sinking tide sinks all boats...the best you can to is try to stay diversified in different asset classes.
likecarter 5y ago
Puts on the SP500 is the purest hedge there is.
Ekaros 5y ago
There might not be any hedge. If everything on market is over heated then there is really not much to avoid it. Maybe best bet is to choose some less overheated areas which are stable enough to carry through any type of upheaval.
fullshark 5y ago
Labor?
baq 5y ago
Long vol, as always. It might be a bit too late tho.
after_care 5y ago
Real estate is the safe harbor. It has intrinsic value. Low mortgage interest rates means cash flow can be manageable even if real asset prices drop. Population trends are predictable, so the future demand is basically a known factor. Downsize is that it’s much less liquid than the average asset class.
- seanmcdirmid 5y ago
  It seems to me that real estate will be one of the first bubbles to pop big like it did in 2008. Long term you might be ok, but it could take 10 years to recover what you paid for it when considering inflation. If you are pessimistic, moving into real estate as a hedge seems like a bad idea.
Jensson 5y ago
You have to invest in something the herd isn't investing in. But since the herd currently is investing in index funds it means that basically everything will get hit once the herd changes their mind.

What’s the hedge for this bubble? Cause I’ll be honest looks like most if not all assets classes are going to take a hammering. There seems to be no safe ports available.

m0llusk 5y ago

Real wealth is the hedge. Organizations which through there operations generate greater value than they consume. Lots of these are doing badly right now, but they have the potential to endure and provide small but steady payouts during a correction when all the big players get called on their bets.

hashimotonomora 5y ago

Do something of intrinsic value.

mdm12 5y ago

To go with your shipping metaphor, a sinking tide sinks all boats...the best you can to is try to stay diversified in different asset classes.

likecarter 5y ago

Puts on the SP500 is the purest hedge there is.

Ekaros 5y ago

There might not be any hedge. If everything on market is over heated then there is really not much to avoid it. Maybe best bet is to choose some less overheated areas which are stable enough to carry through any type of upheaval.

fullshark 5y ago

Labor?

baq 5y ago

Long vol, as always. It might be a bit too late tho.

after_care 5y ago

Real estate is the safe harbor. It has intrinsic value. Low mortgage interest rates means cash flow can be manageable even if real asset prices drop. Population trends are predictable, so the future demand is basically a known factor. Downsize is that it’s much less liquid than the average asset class.

seanmcdirmid 5y ago
It seems to me that real estate will be one of the first bubbles to pop big like it did in 2008. Long term you might be ok, but it could take 10 years to recover what you paid for it when considering inflation. If you are pessimistic, moving into real estate as a hedge seems like a bad idea.

Jensson 5y ago

You have to invest in something the herd isn't investing in. But since the herd currently is investing in index funds it means that basically everything will get hit once the herd changes their mind.