A hedge is a position established to offset the risk of adverse price movements in an investment or asset. For example, an investor might purchase a put option (the right to sell a stock at a set price) to hedge against the risk of a stock they own moving sharply down.
Most investors have heard of hedge funds. They take the concept of a hedge and instead of offsetting price movements to cut risk, they actually aim to profit from those movements.
Here’s the strategy behind hedge funds: If the market goes up, the good stocks the fund holds “long” should rise more than the weak ones fall, so the gains on the good stocks should exceed losses on the “short” sales. Alternatively, if the market falls, the bad “short” stocks should fall more than the good “long” stocks, so gains on the short sales should exceed losses.
However, profitable short selling requires superhuman timing, and the inevitable mistakes can be super expensive.
Sectors of investing can be viewed as hedges as well. Resource stocks in particular will provide a hedge against inflation, because they gain directly from rising prices for the commodities they produce.
While we think it’s important for investors to know how hedges work, we feel you are far better off investing mostly in sound, dividend-paying stocks. And to pick those stocks, follow TSI Network’s three-part Successful Investor strategy:
Get the complete guide to Investing for Beginners and build wealth with a conservative investing approach—this free report. Find out what they are in our FREE investing guide, How to Invest in Stocks: Canada investor advice on building a balanced stock portfolio
DIREXION DAILY AMZN BEAR 1X ETF $18.71 (New York symbol AMZD) holds short positions in the shares of only one company—Amazon.com. The ETF launched in September 2022 and has just $3.0 million in assets under management.
The objective of the ETF is to generate a return equivalent to… Read More
Blue chip stocks paying a dividend are typically good stocks to buy because that provides you with tangible proof of their investment quality
Blue chip companies are very often good stocks to buy. They have a history of earnings and, in most cases, a history of… Read More
NEWMONT CORP., $37.27, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares outstanding: 794.8 million; Market cap: $29.6 billion; TSINetwork Rating: Average; Dividend yield: 4.3%; www.newmont.com) has now re-opened its Penasquito mine in Mexico after the… Read More
A: Interactive Brokers Group Inc., $80.08, symbol IBKR on Nasdaq (Shares outstanding: 107.0 million; Market cap: $33.9 billion; www.interactivebrokers.com), is a technology-driven U.S. online stockbroker.
The company makes money from client trading, interest from client cash, and other revenue sources and investments. In all, it provides… Read More
NEWMONT CORP., $39.43, New York symbol NEM, remains a buy for your long-term growth and as a hedge against inflation.
The company is the world’s largest gold miner, with major mines in North America, South America, Australia, and Africa. In addition to gold, it also produces… Read More
TC ENERGY INC., $45.23, is a buy. The company (Toronto symbol TRP; Shares outstanding: 1.0 billion; Market cap: $46.0 billion; TSINetwork Rating: Above Average; Dividend yield: 8.2%; www.tcenergy.com.) generates steady cash flow for investors mainly through a 93,700-kilometre pipeline network that pumps natural gas from Alberta to eastern… Read More
Tap into our mining investment resources to make sure you’re looking at all factors when investing in mining stocks
Mining stocks can generally be broken up into two categories, majors and juniors. Majors are typically mining companies that have been in the mining business for many… Read More
VERIZON COMMUNICATIONS INC., $33.45, New York symbol VZ, is your #1 Income Buy for 2023.
The telecom provider is the second-largest wireless carrier in the U.S. after AT&T (New York symbol T), with 143.2 million subscribers (consumers and businesses) as of June 30, 2023. It also… Read More
A: FactSet Research Systems Inc., $433.45, symbol FDS on New York (Shares outstanding: 38.1 million; Market cap: $16.6 billion; www.factset.com), is a leading provider of financial data and portfolio analytics to investment firms worldwide.
In March 2022, FactSet completed the acquisition of CUSIP Global Services for… Read More
Your search for top Canadian stocks should focus on blue chips that pay sustainable dividends and meet our Successful Investor criteria
We continue to think investors will profit most—and with the least risk—by buying shares of well-established companies that have strong business prospects and strong positions… Read More
Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' FREE Special Report from The Successful Investor.
How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
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TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: service@tsinetwork.ca.
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How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.
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