With all the absolute insanity happening in the stock market right now, I think this is an important time to discuss the greatest financial hedge of all time.
Is it a balanced portfolio of stocks & bonds? Real estate? Bitcoin???
No, the best financial hedge anybody can possibly have is…… multiple streams of income.
Think about it. What is the goal of a hedge? Consistently generate higher returns than the overall market, while being immune to market downturns. News flash: that ain’t happening in your personal portfolio. Even professional hedge fund investors have a hard time achieving that (as we have seen recently). So how is it possible to answer the question “How can I participate in the market gains without actually caring when the market goes down?” In addition to a 9-5 job, having other sources of income allows you to not feel impacted by macro market trends. If the market drops, you might even see it as an opportunity to buy more because you’re not relying one one source of income. Now, the hard part is determining what your income streams will be: ecommerce, real estate, selling online courses, making a blog, but in order to be hedged, building up a few different revenue streams it the best thing you can do for yourself.
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