We live in uncertain times
From Brandon's Analysis and words from the Federal Reserve Themselves, we will be in a high interest rate environment for the next 12-48 months at least. This could be a negative catalyst for markets.
There is also never a 0% chance of unexpected Black Swan events or World Changes that can take place. When these things happen they can be a catalyst to bring down the Stock Market.
I may have been hesitant to invest in the stock market due to downside risk fears.
Most people contribute to their 401k's or invest in their personal accounts by buying and hoping one day they can sell at a higher price.
What if I plan on doing that, but in between I could hedge out the downside risk completely, spending very little of my portfolio's value?
With a hedge in place, I could actually make money on the market dropping, if it doesn't drop, in the long term I still outperform the broad market and those who don't have the hedges in place.
You can think of a hedge as a House Fire Insurance Policy. With the tools we all have access to nowadays anyone with the right direction can hedge out their portfolio, it doesn't require some advanced math nerd equations on a whiteboard.
Presented by Brandon Sterling
Safe Haven Portfolio Management
Portfolio & Risk Manager
Brandon specializes in Quantitative, Qualitative, Statistical, and Probability analysis.
Brandon has contracted with and provided trade ideas to Hedge Fund Managers for them to profit from.