Zell: Cost of Hedging Across Board More Expensive

The video discusses the increasing costs of hedging due to market volatility, highlighting how some multinational companies use diversification as a natural hedge. It emphasizes the risks associated with currency volatility and the tendency of some investors to over-hedge. The challenges of hedging in real estate investments, particularly in emerging markets, are also covered. Finally, the video suggests appropriate timeframes for hedging contracts, noting that short-term contracts are more feasible to hedge.

In what scenarios might hedging be considered prohibitive?

What factors should be considered when deciding how long to hedge investments?