Rich Habits Podcast

120: How To Hedge Against Market Volatility in 2025

36 snips
Jun 2, 2025
The discussion dives into three key strategies to hedge against market volatility expected in 2025. It examines the rising trend of 'buying the dip' and emphasizes diversification with investments in Bitcoin, gold, and silver. The talks also cover the importance of investment-grade corporate bonds and the mechanics behind them. Additionally, practical advice is offered for managing retirement accounts after marriage and the potential risks of using 401k funds for debt. Financial literacy is underscored as crucial for long-term stability.
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INSIGHT

2025 Market Volatility Overview

  • Market volatility in early 2025 involved sharp V-shaped dips and recoveries.
  • Diversification and hedging strategies are essential to offset this volatility.
INSIGHT

Retail Investors' Volatility Response

  • Retail investors tend to buy the dip based on their full bull market experience.
  • Many diversify into fixed income bonds to achieve steady returns during volatility.
ADVICE

Using Puts for Protection

  • Sophisticated investors buy put options on indices for downside protection.
  • Thoughtfully selecting strikes and premiums helps manage hedging costs and leverage.
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