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Consider hedge funds.
That may be the psychology pushing some investors to consider hedge funds, financial experts say.
Consider "Hedge Funds for Dummies," which Ms. Logue said was written from February to June of this year.
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Breaking climate-risk management out into four major factors (denoted by the acronym TRIP, which stands for technology, resource availability, impact, and policy), the authors recommend that long-term investors "consider hedging and weighting changes" and "focus on risks and opportunities across and within asset classes".
Companies looking for flexibility now may consider hedging against rising interest rates.
It is especially important to consider hedging when investing in risky emerging markets such as China.
If you're long on eBay, consider hedging with either covered calls or puts.
However, with the potential for a rebound and an unwinding of penned-up bearish sentiment, you may want to consider hedging this bet by adding an in-the-money call.
We would also suggest that subscribers consider hedging their portfolios using one of three common "derivative" strategies accessible to individual investors: Rydex inverse funds (www.rydexfunds.com), which rise in value when the major indices fall, long-term put options on the major indices (LEAPS), and/or short selling index tracking stocks such as the Spiders, Diamonds and Qs.
Consider hedging bamboo in on one side with a pond or stream.
It's a tough sell, considering hedge fund performance has routinely underperformed the Standard & Poor's 500-stock index in recent years.
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