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Cash is the only true hedge: Any Other Hedge is just another position.

courtesy of @Amethyst ( dated 2017-03-23 20:31

Stay in cash is 100% hedging your gains without any further downside risk.

Hide in money markets is 95% hedging your gains with minimal downside risk yet possibly enjoying some upside in interest gain 2-3%.

Staying in investment grade bonds is akin to 80% hedging your gains for higher interest 2-4% but subjected to interest rate risk as we are in a rising rates period.

But if you are still holding onto equity now, and want to lock in profits without selling your holdings, short a portion of your holding maybe to protect against downside I guess.

nice addon from marginofsafety:

Investing is a lifelong process imo. Your CAGR is calculated based on how much you started with and how much you end up with.

Say you target a return of 10%. In order to reach it, there will surely be periods where you underperform and outperform the 10%. Trying to hedge only when you hit your target will cap the returns you get and it probably will reduce your returns in the long run.

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