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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (56830)2/5/2016 12:14:10 PM
From: Graham Osborn  Read Replies (1) of 78753
 
OT: I guess what would concern me about specifically hedging the yuan is that is really a symptom of the international debt crisis as manifested in China. A yuan deval is just once way the unwinding of leverage could hurt US stocks, so your positions wouldn't be fully hedged if a deval comes later or less than expected.

I should talk btw, my microcaps continue to get hammered and my hedges are still way out of the money so the effect is by no means symmetric. Which means I'm going to feel not so smart for a while (and maybe forever:)).

If you want to hedge against delevering buying long-dated puts on the TQQQ might be an option. I hope to do so on the next rally. And of course cash is a hedge to some extent for FX specifically. Hope that helps answer your question.
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