Stocks & Commodities V. 26:7 (14-16): Forex Focus: Hedging Against A Bear Market by Matthew Caruso

Stocks & Commodities V. 26:7 (14-16): Forex Focus: Hedging Against A Bear Market by Matthew Caruso
Item# \V26\C07\131CARU.PDF
$2.95
Availability: In Stock

Product Description

Forex Focus: Hedging Against A Bear Market by Matthew Caruso

Ever considered foreign currencies during a bear market? Hereís why you should.

It has been more than five years since the last bear market in US equities ended. The recent explosion in volatility in the markets and the 507-point, or 4.19%, oneweek fall in the Dow Jones Industrial Average (DJIA) during the week of January 18, 2008, has led to many inquiries about the best way to hedge against a bear market in US equities.

Buying gold is often said to be the simple solution to hedging against a falling stock market, but gold fell $16, or 1.8%, during Januaryís largest weekly decline. Anyone seeking shelter in gold was shocked with a loss rather than a profit to offset the weak stock market performance. Perhaps the market wisdom of hedging a falling stock market by buying gold may not be true. A good starting point in seeking the best stock market hedge would be to examine which markets would have produced a profitable alternative to equities during the stock marketís large weekly decline.

PROFITABLE ALTERNATIVES

Alternative markets related to the equity markets include foreign currencies, bonds, and precious metals. They will be examined in order to see if any of these provided a good hedge in Januaryís largest weekly decline as well as in past bear markets. In addition, sectors within the market such as consumer staple stocks and utilities are often cited as a way to sit out market corrections due to their position in the economy and their typical status of being large dividend payers. Therefore, stocks from these sectors will also be studied in detail.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order