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Hedging

1-12 out of 16 results.

Choose your hedges wisely… and often

A new market regime is exposing the fragility of static hedges. With correlations shifting and safe havens flipping, investors must rethink diversification and adopt more adaptive tools to protect capital.

Clime time: Trump's US dollar assault is fuelling CBA's rise

Australian-based investors have been perplexed by the steep rise in CBA's share price But it's becoming clear that US funds are buying into our largest bank as a hedge against potential QE and further falls in the US dollar.

Does currency hedging provide an edge?

A growing number of Australians are choosing to hedge their international equity exposures. Currency movements are difficult to predict so investors should treat currency hedging as a way to manage risk, not to add return.

To hedge or not to hedge?

The decision whether to hedge your international equity portfolio can impact your investment over the short and medium term, but an analysis of the data shows that currency impact over the long term is negligible.

Benefits of holding gold in Australian dollars

2022 is another example of gold providing portfolio protection when it’s needed most. Australian investors may be able to magnify the protective benefits by purchasing gold in Australian dollars.  

What drives Australian versus global equity performance?

We tend to think of the 'stockmarket' as one beast, but it pays to know the drivers of the different parts, especially global versus Australian stocks. The outlook favours global due to better sector exposure.

Hide and seek: the FX impact on global equity investments

As more Australians tilt their investments to global equities, they often overlook the exchange rate risk and fees. The move from US57 cents to US73 cents in six months shows the unhedged impact.

Red pill or blue pill? Navigating the matrix of fixed income

Government bond yields are so close to their lower bounds that they are unlikely to provide the returns of the past, nor act as a counter to falling equity markets. What are the investment choices?

Is gold a growth or defensive asset?

As uncertainty intensifies around geopolitics and markets, gold has rallied strongly in 2020. While most investors think of gold for price growth, does it deliver defensive features to a diversified portfolio?

Hedging for capital preservation

New ways to hedge the risks in an equity portfolio are now readily available, including bear funds designed to make money when the market falls. They're not for everyone so check with a financial adviser.

The asymmetric value of gold for Australian investors

An investment in gold without hedging the currency risk of the USD price can deliver portfolio diversification and protection, with the AUD price often rising when equity markets are falling.  

Protecting from downturns using options

The S&P500 experiences a one-month return of -10% or worse only 1.5% of the time. Most drawdowns were much shallower and occur at higher frequencies, but are they worth spending money to protect against?

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

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