Non-Derivative Ways You Can Hedge Against the Market

The video discusses various hedging strategies, focusing on non-derivative options like the I Shares 20+ Year Treasury Bond ETF (TLT) and gold ETFs. It highlights the advantages of using TLT as a hedge against market downturns, comparing its performance to gold during past market corrections. The video also explores cost-efficient gold ETFs and introduces PIMCO's enhanced short maturity fund as a cash alternative. Finally, it explains the benefits of using derivative-free ETFs to avoid complexities like contango.

What is one non-derivative method mentioned for hedging against market risks?

• Cryptocurrency

• Real estate investment trusts (REITs)

• Gold futures

• I shares 20+ year Treasury Bond ETF (TLT)

During the 2008 financial crisis, how did TLT perform compared to the market?

• TLT was down 2%

• TLT was up 3%

• TLT was up 33%

• TLT was down 37%

Which investment was only up 3% during the 2008 financial crisis?

• Real estate

• Gold

• TLT

• S&P 500

What is a cost-effective alternative to GLD for investing in gold?

• Cryptocurrency

• PIMCO enhanced short maturity fund

• TLT

• IAW

What is the main advantage of PIMCO's enhanced short maturity fund?

• High risk and high return

• Investment in long-term bonds

• Low risk with a yield higher than money markets

• Focus on emerging markets