2 months Hedging against a Market Crash, 2008′ all over again Reddit    

Hey everyone,

I did put a lot of research into the current situation for quite some time and finally build a portfolio I am 100% behind long-term. However, the more I learned, the more sure I am that we will experience a market crash rather soon, than late.

Here is the issue: If I pull out all of my cash right now, potential Hyperinflation, which I think will be upcoming, will burn through my cash. If not, the market might crash and a good chunk of certificates might be of no value anymore. I currently have 5x leveraged K.O. Long certificates on Apple, MSFT, Biontech and Alibaba with a small amount of money (in total around 15% of my entire portfolio are derivatives), the rest are pure shares. I expected all of them to perform decent in times of hyperinflation, since they can easily adjust their prices to counteract high inflation and institutions will stick to them anyways. Ofcourse, more reasons than that. However, my biggest asset is the Vanguard FTSE All World ETF with around 25% of my total portfolio. How can I expect this ETF to move if the USA and China collapse? If those collapse, Europe might be next.

Now, the catch. I did so much research, learned constantly and came to the conclusion, which I am not here to debate whether or not you think is true, that we might see something like 2008 all over again. The theory behind it would assume that GameStop is the current best hedge and to some degree AMC as well, even heard that from the highs up from a bank when I talked to my bank guy, which is incredibly weird. I should mention, I am from Germany, so things are not as heated here.

Another hedge and long term hold can not be mentioned in this sub, but you might guess what it is. Sadly, we cant debate this here.

So, in case of this scenario, I would like to get everyone's opinion on this. I want to be clear, I value every single opinion and would love the most input possible. In order to get knocked out, the stocks mentioned above would need to fall 20% in total. In case of no crash, they would be my go to investments, ontop of a few other non mentioned with the same principal. Again, this is purely theoretical, I do not want to discuss whether or not it is happening, but what you would do in case it is.

TLDR: How would you hedge against a potential market crash ala 2008 due to Evergrande and GameStop and the general current situation?

submitted by /u/chriizzl
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