How to Hedge Your Investment Portfolio

Investing in the stock market can be very rewarding, but if you get your timing wrong and buy at the peak of the market it can also be disheartening or even devastating financially.  So how to you insure or hedge against losing money in the stock market, bond market or housing markets?

There are several methods which I have detailed below, from the simple balanced portfolio, where non-correlated assets are mixed to reduce the effects of markets falls to more complex financial engineering or trading in derivatives, options and covered warrants.

Disclaimer: Information in this and other linked articles is unregulated and for general information only and is not intended to be relied upon in making specific investment decisions. Appropriate independent advice should be obtained before making any such decision.