Is There Any Other Good Hedge?

[Kazu]

Due to IRA restrictions I can only invest in certain specific things. (Don't even get me started on my 401K restrictions, those are downright insane, I can only invest in my choice of like 20 mutual funds that take huge cuts of my profits and take 3 days !!! for me to sell out of.)

I've noticed that lately nearly all my ways of hedging have been destroyed, even in the IRA which I have a relatively large amount of control over.

1. Contango has made investing in VIX ETFs basically impossible for any non-minute amounts of time.

2. Gold has been absolutely destroyed. I'm following the "holding for the longest time" ideology on my current investment, but considering the amount of loss I have taken in the past months I am hesitant to buy any more, I think I'm a bit overweight there.

3. I basically can't trade forex on my broker, a few years ago they randomly eliminated the opportunity to invest with any leverage into any foreign currency (except through their oh-so-valuable proprietary ETFs).

4. Now my broker randomly "turned off" my option to trade with margin. Bye-bye shorting. In order to have them turn it back on I have to physically mail them a document with my signature to AZ. God knows why they need it again, I remember going through this BS a while ago.

5. My broker says I could reduce my risk by buying bonds. Ha, ha that stopped being a viable option years ago.

I like to consider my Bitcoins a sort of a hedge, and I was just wondering if anybody here can think of any others. I literally freaked out when the market crashed today, fortunately it came back. Next time I might not be so lucky.

[Rothgar]

Buy a couple of these. Certain firearms rarely go down in value, and this one in particular just keeps getting more and more valuable.



If you want smaller.

Hey you're suspended. 

[Kazu]

Buy a couple of these. Certain firearms rarely go down in value, and this one in particular just keeps getting more and more valuable.

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If you want smaller.

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Edit: Also certain calibers of ammo are in a huge bubble right now, shelves empty. Wait a few months and it may start to get dumped on the market for below retail. Buy several thousand rounds of 9mm, .45 Auto, 5.56x45, 7.62x39, and .22 long rifle. Wait until the next gun legislation scare and sell for 4-5 times what you paid with ease.

This is probably only applicable to US though.

That sounds like a huge pain. I have no idea how I'd either buy or sell these without going somewhere I would much rather not go. Furthermore I have no desire to be associated with the sale of such weapons.

[Kazu]

Buy a couple of these. Certain firearms rarely go down in value, and this one in particular just keeps getting more and more valuable.

[img]

If you want smaller.

[img]

Edit: Also certain calibers of ammo are in a huge bubble right now, shelves empty. Wait a few months and it may start to get dumped on the market for below retail. Buy several thousand rounds of 9mm, .45 Auto, 5.56x45, 7.62x39, and .22 long rifle. Wait until the next gun legislation scare and sell for 4-5 times what you paid with ease.

This is probably only applicable to US though.

That sounds like a huge pain. I have no idea how I'd either buy or sell these without going somewhere I would much rather not go.

Well, as I said, it's probably only applicable in the US, so if you don't live there, disregard. I don't know the firearms laws for most other countries around the world. All this is completely legal where I live, and quite easy.

I do in fact live in the US, but in CA. I suppose I could try playing the silk road, but it seems like more trouble than its worth. There is no way I could possibly hedge my huge investments in the market by essentially becoming a gun retailer.

[Melbustus]

I like to consider my Bitcoins a sort of a hedge, and I was just wondering if anybody here can think of any others. I literally freaked out when the market crashed today, fortunately it came back. Next time I might not be so lucky.

If you just want to hedge stock market risk, then why not some SPY put options? Reducing risk at the expense of return is exactly what options are theoretically for.

[loanexpress]

I literally freaked out when the market crashed today, fortunately it came back. Next time I might not be so lucky.

What crash today??

In any case - what about property? (as in real estate)

edit: just realized you were probably not talking about the bitcoin market crashing! 

[Le Happy Merchant]

Obviously its not feasible, but buying nickels is a bulletproof investment plan. The metal is worth more than 5 cents and rising, and if the price of the metal drops you can always just spend them for their face value.

[Manticore]

I like to consider my Bitcoins a sort of a hedge, and I was just wondering if anybody here can think of any others. I literally freaked out when the market crashed today, fortunately it came back. Next time I might not be so lucky.

You want to use something as hyper-risky as Bitcoin as a safety hedge?

[epetroel]

What exactly are you trying to hedge against?  If it's the dollar, then Gold seems to be the classic hedge and you already stated that you are overweight there.

[ruski]

Buy a couple of these. Certain firearms rarely go down in value, and this one in particular just keeps getting more and more valuable.

Since when is the M82 appreciating? They're still in production, the only reason firearms are getting more expensive is Obama's fruitless attempts to ban them.

The M99 is the gentleman's gun anyhow.