As the market continues to march ahead, I thought this might be a good time to revisit "Hedging", and how others tend to deal with market volatility. I'm always refining my own process, and would love to know what yours is... 🦜
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Joshua Simka's avatar
Nicely written and thorough memo, @parrot! I appreciate that you included cash as a hedging strategy. Lots of people immediately assume that a hedge has to make use of very sophisticated instruments, but sometimes simpler is better. :) What percent of a portfolio would you want in cash to use it as a hedge? 4%? More like 12%? 30%?
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ParrotStock's avatar
@parrotNovember 17
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My biggest cash position would probably be 10% +/-; that's as much as I have raised in the past (basically my allocation for trading). I wouldn't plan to close any long term conviction positions, although there are some on the fringe that I might think about in a correction.

I do my best to keep 2-3% cash at all times, but there is always something to buy 😅
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