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    Sunday, April 2, 2017

    Thought-Provoking Idea: Hedging Your Dividend Passive Income Portfolio with Bear ETFs

    This post is more of a dialogue starter that the normal cheerleader post for dividend investing or an individual company which produces passive income.  Yes, a dividend focused portfolio can shield you and your assets from bearish times like market crashes and recessions.  However, you can still lose a lot of value and this could be a serious problem if you need the money anytime soon.

    As of the date of this post, the market has been performing incredibly and it's been a bull market for many years.  However, we all know that there are cycles and that no bull runs forever.  The bear ETFs have taken an incredible beating since 2010/2011.  Given their extremely cheap prices, might picking up a few shares serve as a hedge when the next bear market comes?  Or perhaps building a small position might help to defray losses in a market bloodbath?  Food for thought even for the passive income dividend-hungry investor. 

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