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To: Chuzzlewit who wrote (21685)11/17/1997 12:14:00 AM
From: Paul Merriwether  Respond to of 176387
 
<<You cannot hedge investment accounts (IRA's and Keough's etc.) because they are
cash accounts (i.e., no margin allowed which precludes short-selling -- although you
can sell covered calls and buy covered puts). >>

I agree. But if you happen to have money in a non-retirement account
as well(which I do), you can potentially hedge your long portfolio
in a retirement account during uncertainty in the market, by selling
short. In other words, sicne the 401K etc. is only invested "long"
I feel that my shorts are a hedge against it.