Hedging against a stock market crash

[Bubblegun]

Regarding hedges, one thing you could research is buying put options and seeing if this belongs in part of your portfolio.

Not to be advised if you don't know what they are.
This suggestion introduces considerable risk and also complexity.

Totally. The only put option I'll be doing is to PUT more money in. Nice and simple!

I would like to tap into the yen strengthens and weakens thing I've been reading. And how terrible it is for consumers because the imports go up.
I used to subscribe to that. But I realize even if the yen strengthened we aren't going to see PRICES BEING CUT to reflect that. If anything I think a company may say, well if we can sell it for that price anyway, we can keep it at that price for years to come and pocket the difference in profits, passing them onto shareholders. While companies are quick to hike prices, but we generally don't see them cutting prices based on the strength of the yen. Maybe stay the same, or just go up a little in the coming years, but do we (the consumer) see the prices ever fall because the yen has strengthened? or is this just an academic, economic discussion that's really just a discussion point? At the end of the day, I buy my bread/rice or coffee, because I "NEED" the bread/rice of coffee no matter the price today, or tomorrow.
It may come down over the years if prices are not increased in line with inflation, but that seems to be about it.

[Tsumitate Wrestler]

Regarding hedges, one thing you could research is buying put options and seeing if this belongs in part of your portfolio.

Not to be advised if you don't know what they are.
This suggestion introduces considerable risk and also complexity.

Totally. The only put option I'll be doing is to PUT more money in. Nice and simple!

I would like to tap into the yen strengthens and weakens thing I've been reading. And how terrible it is for consumers because the imports go up.
I used to subscribe to that. But I realize even if the yen strengthened we aren't going to see PRICES BEING CUT to reflect that. If anything I think a company may say, well if we can sell it for that price anyway, we can keep it at that price for years to come and pocket the difference in profits, passing them onto shareholders. While companies are quick to hike prices, but we generally don't see them cutting prices based on the strength of the yen. Maybe stay the same, or just go up a little in the coming years, but do we (the consumer) see the prices ever fall because the yen has strengthened? or is this just an academic, economic discussion that's really just a discussion point? At the end of the day, I buy my bread/rice or coffee, because I "NEED" the bread/rice of coffee no matter the price today, or tomorrow.
It may come down over the years if prices are not increased in line with inflation, but that seems to be about it.

Outside of the indexes, the options market in Japan is pretty illiquid, only two brokers even offer Japanese (single) stock options. Only IB and SAXO offer American options to Japanese residents, but I believe Firsttrade offers American options to non-residents.

Options in my opinion should not even be open to non-licensed inventors, there they do too much damage to retail traders. The "knowledge/experience" walls they put up with the skill testing question are complete window dressing, and the answers are all googleable.

The little brother to this bad idea is leverage indexes (bull/bear, up to 4.3x in Japan). Now these can make sense in very certain conditions where you need a hedge for a day or so. But holding them overnight is pretty damn risky.

[ToushiTime]

JLCollinsnh stock series.

I just Googled that site. It is very good. Thank you. His discussion with a follower about avoiding REITs was excellent.

[captainspoke]

JLCollinsnh stock series.

I just Googled that site. It is very good. Thank you. His discussion with a follower about avoiding REITs was excellent.

Based on your comment, I googled it, too.

Sorry, but I think a person's investing guidelines should be simple. And that's "simple" as in easily boiled down to a few phrases on an index card.

(not a series of rather long videos.)

[adamu]

JLCollinsnh stock series.

I just Googled that site. It is very good. Thank you. His discussion with a follower about avoiding REITs was excellent.

Happy to help I've been recommending that site here like a broken record for years - usually in threads like this when people are at risk of selling out during a downturn.

Hi Neil.

I really recommend jlcollinsnh's Stock Series of blog posts - it's a great read (although US-focused). And the first post happens to be "There’s a major market crash coming!!!!" which ties into your question perfectly.

http://jlcollinsnh.com/2012/04/15/stock ... -save-you/

I sold 100% of my shares about 3 weeks ago and put them into an account earning basically zero interest. All the talk of trade wars and recession freaked me out and I don't think a no-deal Brexit will help. However have to admit I'm usually hopeless at predicting this stuff. Time will tell.

I can't predict the future, you could be right. But maybe this article will be helpful?

https://jlcollinsnh.com/2012/04/15/stoc ... -save-you/

This might be too much of a different topic but a lot of the info that I saw is saying that the market will likely crash very soon so it is a worry.

https://jlcollinsnh.com/2012/04/15/stoc ... -save-you/

https://news.bitcoin.com/robert-kiyosak ... e-bitcoin/

A nice opportunity to re-read the words of Jim Collins

https://jlcollinsnh.com/2012/04/15/stoc ... -save-you/

In the comments Jim Collins also linked to this post by Ben Carlson which specifically addresses Kiyosaki's comments.

https://awealthofcommonsense.com/2023/1 ... r-readers/

Topical post from Ermine recently:

https://simplelivingsomerset.wordpress. ... ain-sight/

And in case that got you down, there's always the classic:

https://jlcollinsnh.com/2012/04/15/stoc ... -save-you/

Not selling during a downturn is the most important part of long term investing.

If you sell, you lock in the losses, but, history shows, if you ride it out, the market always goes up.
On the plus side, you're now getting more for your new investments, which can grow more in the future.

https://jlcollinsnh.com/2012/04/19/stoc ... s-goes-up/

And so has RJ a bit:

Read this series of blog posts (or his book): https://jlcollinsnh.com/stock-series/

That should give you the basics of investing

Simple Path to Wealth is available free in blog form: https://jlcollinsnh.com/stock-series/

Welcome! Read this first: https://jlcollinsnh.com/stock-series/

[captainspoke]

So, eleventy bazillion links (including the links within the links you linked to), to figure it all out?

Sorry, but no thanks.

[beanhead]

So, eleventy bazillion links (including the links within the links you linked to), to figure it all out?

But many of the links are to the same resources.

[ToushiTime]

JLCollinsnh stock series.

I just Googled that site. It is very good. Thank you. His discussion with a follower about avoiding REITs was excellent.

Based on your comment, I googled it, too.

Sorry, but I think a person's investing guidelines should be simple. And that's "simple" as in easily boiled down to a few phrases on an index card.

(not a series of rather long videos.)

Long videos?
There aren't any.
The guy is basically a Bogglehead from what I gathered.
Maybe you are right and he should put bullet points on his home page, but I don't find him that verbose, and he delves into the usual issues retail investors face.