Market Crash/Downturn

Outside of treasury instruments, precious metals, and holding cash, what would your hedge be in a severe downturn or crash? I'm curious if anyone has any novel approaches outside of the obvious (which I guess would include doubling down to take advantage as well).

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u/_Underscore_Unders — 7 days ago
▲ 43 r/ETFs

SCHD

I don't hold it myself, and I don't focus on dividend investing, but every time I see a beginner make a post with SCHD holdings everyone, just bashes dividends for young investors, and promotes high growth (which I agree with).

I think i already know most of the answers I'm going to see but I'm genuinely curious.

Especially with beginners why does no one ever take the time to explain the benefits of a lower beta (a concept every investor should understand whether they utilize it or not), and why does no one ever consider the benefits of SCHD as a volatility hedge?

In theory seeing a lower drawdown over your portfolio as a whole could be the reason a beginner doesn't panic sell and lock in losses. That SCHD with a .54. Beta could be the metal stability in a choppy market that makes the difference between a panic sell and staying in the market for 20 years reaping rewards. If high growth is the suggestion, panic selling would be the ultimate detriment, much more so than holding something that returns a bit lower than the market. Just theorizing here.

All input appreciated. I've been thinking about this for a lonnngg time.

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u/_Underscore_Unders — 11 days ago

Non traditional investments and income streams.

Hello all.

I'm just curious what everyone is doing as a secondary income stream, what your original cap-ex was, and how it has been working for you.

Secondly, outside of what can be accomplished in a brokerage account, what tangible/ non traditional investments do you hold and how have those been working out?

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u/_Underscore_Unders — 12 days ago

Non traditional investments and income streams.

Hello all.

I'm just curious what everyone is doing as a secondary income stream, what your original cap-ex was, and how it has been working for you.

Secondly, outside of what can be accomplished in a brokerage account, what tangible/ non traditional investments do you hold and how have those been working out?

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u/_Underscore_Unders — 13 days ago

Beginning with options.

​

Hello all,

In a long term investor with little to no interested in trading/ options up until recently. I have a well funded brokerage account, and a Roth/traditional each of which im just shy of maxing out.

I'm not looking for any get rich quick scheming, or setting myself up to be a loss porn content creator. I would simply like to generate an extra $50-$100 (ish) a week which will be immediately withdrawn and placed into long term holds allowing me to maxing out my retirements and add a bit more than I already do to my brokerage.

I have no illusions about being able to recreate any gains on indefinite regular basis, and have a decent working knowledge of the market with the exception of options. I already plan on paper trades for some time before jumping in.

If you all could be so kind as to answer the following questions to point me in the right direction. Anyone who can speak from experience rather than theory would be extremely appreciated.

  1. Which options strategy would you suggest learning and practicing to generate the meager supplemental income I desire.

  2. Which brokerage/app would you suggest that had the best options platform (currently use robinhood for all my long term investing).

  3. Which application/platform is FREE and would provide the best experience for a novice learning via paper trades.

Any help would be greatly appreciated.

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u/_Underscore_Unders — 15 days ago
▲ 6 r/LETFs

Long term question.

Hello all,

Im a long term investor with a reasonable working knowledge of the market. I'm still 20 years off retirement. I'm aware of all the common arguments against long term leveraged holds such as decay and resets, but I'm a very pragmatic person.

When i look at the annualized returns since inception between qqq, and all of its leveraged counterparts, the numbers speak volumes.

In a massive market downturn ill be losing money regardless, and I know that these since inception numbers cover some decent downturns but nothing remotely approaching an actual crash (or what I would consider a crash anyways).

That being said, and taking out any personal biases, trading strategies, etc. : Can anyone convince me that holding 5-10% of my portfolio in a 2x voo or qqq won't have a very high probability of adding increased value to my portfolio 20 years from now?

I'm on the brink of pulling the trigger but I see many people vehemently arguing against long term leveraged holds.

I'm not a huge risk taker, the entirety of my portfolio are broad market etfs with a slight momentum/tech tilt for gains while I'm still relatively young, I will never touch margins and am adverse to options, but simple long term data provides a clear argument for this move. I almost fell like im leaving money on the table not doing it.

I have no recency bias, and I know nothing is garunteed, but I can only make decisions based on logic and available data which is historic.

Any viewpoints would be appreciated. Thanks! If anyone is actively doing what I'm describing please chime in.

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u/_Underscore_Unders — 15 days ago