Replying to @⁨TubularTittyFrog@lemmy.world⁩

Those are reasons why loses aren’t as big of a concern for rich people. Not why hedges are only for rich people.

The cost of a hedge is proportional to the assets being protected. If someone has say a $10,000 portfolio of stocks, and they think the market will crash in the next month or two, they could buy a protective option hedge for around $100. And if someone has a portfolio of $300 million, they could hedge for ~$3 million. Wealth is irrelevant.

Also hedges aren’t risky. They reduce risk. They’re insurance.

Replying to @⁨testaccount372920@piefed.zip⁩

I mean you can sell everything and leave it in cash i guess. But you have no idea how long these fuckers can keep the house of cards propped up. Government bailout, angel investors, who knows.

Or if you really wanna get risky you could try to find a fund that shorts the market, specifically tech companies, then you could actually make money instead of just not lose any. I’m assuming you don’t want to get into options trading.

But again, timing is the biggest issue. There’s an old saying “the market can stay irrational longer than you can stay solvent”.