5 portfolio hedges to help lock in market gains
BNN Bloomberg
The bulls are expected to keep running on major stock markets this summer thanks to strong corporate earnings and tame inflation.
The benchmark S&P 500 has already advanced by more than 26 per cent over the past year and 86 per cent since the outbreak of the pandemic in 2020. In Canada, the TSX Composite is up a more modest 10 per cent over the past year and 37 per cent going back five years.
That’s generally a good thing but for retirement investors focused on the long-term it brings an opportunity to lock in those gains with hedges in case the tide turns and markets go south.
The trick to hedging is to preserve what you have accumulated on paper without compromising opportunity. That’s where the advice of a qualified investment advisor can help. There are many ways to hedge but here are five simple strategies.
