Wednesday, February 2, 2011

SOS Hedge Your Portfolio

It may be a good idea to hedge your portfolio, if you are invested in NYSE stocks, a newly launch ETF bear with ticker "HDGE", who short on specific stocks it deemed overvalue.

With such a volatile market lately, although most may be bullish, it would be wise to hedge your portfolio if the bull reverse. After all the market has went up quite substantially since March 2009, from 6,500 to 12,043, i.e. almost 100% over the last two years.

High dividend yield and strong cash flow stocks should be the priority.

MyView

The stocks had move up for almost 100% since March 2009. Hence, it is not unwise to have some protection now, just in case a reverse to the 2008 downturn. We have seen the PIIGS being roasted and unemployment rate had hardly move. Currently the HDGE is about USD24.80 per share. Remember this is not an investment advice, it is just a personal opinion.

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