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Investment Q&A

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Q: First I want to say what an amazing resource 5i has been. You just started and I already feel it's my best bang-for-the-buck investment! My question is on portfolio hedging. If we are holding stocks we like, but are worried about a general market sell-off, what is the best way for a retail investor to take market risk out? Specifically, I'm asking about accounts I can not short in, RRSP, TFSA ect. Puts usually have high bid-ask spreads, inverse ETFs have high fees and performance slippage. It just seems there is no efficient way for a retail investor with trading costs to hedge. Is selling some of my holdings the best way then?

Thanks,

Matt
Read Answer Asked by Matt on May 23, 2012