August 2024 Stock Market Sell-off: Which Hedges Worked?

In the aftermath of a stock market sell-off, we’re often left wondering, too late, whether we could have protected our wealth. So in this video, we’ll look at what would have worked this time around and how to use this market wobble to reassess our risk management and asset allocation.

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Timestamps
00:00 Introduction
00:17 A Nasty Shock
05:30 What Was “Safe”?
13:36 How Much “Safe” vs “Risky”?

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[oceansunsetak]

My personal market top of the past 30 years was july 10th. Getting out of the market has never worked for me. But reducing risk is getting more attractive.

[dubsdolby]

It wasn't more than a slight spasm, a wobble for a few weeks, no big deal. It's recovered, pretty much anyway.

[timwood]

Another great video. I tell so many people about you and pensioncraft.

[blivs]

I stuck my head in my bay tree hedge, that worked.

[Lamarche]

Hit two hundred grand today. Thank you for all the knowledge and nugget you have thrown my way since last year. The hedge fund you talked then was the game chaNgeR for me. Since I started working with them everything just aligned for good

[robduncan]

Interesting insight. This reminds me how I cracked my second million in my dividend portfolio investing with the help of a finance manager who trades for me.

[meganrich]

This is really an awesome insight, thank you!

[davidgray]

Actually my funds are almost back to where they were before this fluff started.

[davidhaylett]

The Shiller PE remains high for the US . BEN GRAHAM recommended a 50/50 split of stocks/bonds in normal times with rebalancing and as low as 25% for stocks if prices are high . I currently have a 50/50 split stocks/money market and will rebalance soon to pick up some cheaper stocks.
So if you don’t know what to do I think the 50/50 split works well and 50% of your assets are always available regardless of your time line, and every stock crash gives you a rebalance opportunity. If you are risk averse go for a 25/75 split of stocks/money market especially with the current high stock values.
If stock values are down to the Schiller average go for a 75/25 stocks/money market balance. But to avoid the chopping and changing maybe just go for the 50/50 split and rebalance.

[MagicNash]

Love your newsletter, Ramin, you humor is top notch and I get a glimpse of some of the vital economic news I just don't see myself elsewhere most of the time

[ChrisLivingInYork]

Both my wife and I invest in pretty much the same ETFs but use separate accounts. During the latest wobble she panicked and sold out whilst I did absolutely nothing and now I’m almost recovered. It’s incredible how different people deal with the volatility differently. I’ve got ADHD and apparently we are more prone to take risks. I felt absolutely nothing and just carried on with my day😊

[CuriousCrow-mpcx]

We need to talk more about hedging and risk management criteria because if you're buying individual stocks you need to a quaint yourself with risk mitigation strategies and products. Index investors might benefit too, as as buying certain ETFs can mitigate risk in a portfolio.

[ananitashaigges]

Thanks a million times for making this video.

[LarryCohen]

Thanks, Ramin. I want to point out that consumer staples, healthcare, and Industrial offer good hedges during the recession. All of these can be accessed through invesco ETF at 14bps.

[antonisdee]

We could absolutely protect our wealth (by not selling) 😎

[kevinu.k.]

Thank you - Excellent for me.
Would you please consider covering the advantages and disadvantages of currency hedged ETFs? Thanks.

[frederickwoof]

This is when planning for retirement in the future. What is the plan of action when you are already retired and in drawdown?

[davidhaylett]

I think people should also consider that maximising your returns is not a good objective for all of your assets. The important thing is to have enough cash when you need it. I recommend the Ben Graham default 50/50 stocks/money market split. 50% of your assets are safe and if stocks crash it’s an opportunity rather than something to fear.

[Capture]

Thanks for another informative video 👍

[labmq]

Great Content.

As always, thank you 😊