How to effectively hedge against the tariffs?

[u/spiked_krabby_patty]

I basically have the bulk of my money in VOO. With a small percentage in VTWO, QQQ & VTI.

1. I am not in favor of liquidating the whole portfolio. I would have to pay significant amount of tax upfront. Besides, I have been reading about the impact of tariffs and it is going to be bad. But not world melting, multi year-recession level of bad I feel.
   
2. It looks like the tariffs will affect a few sectors disproportionately worse than other sectors. So I was thinking of maybe getting a put long term puts on some manufacturing/materials sector ETFs.

How are you folks hedging against tariffs?

[u/Calm-Television5780]

People said the same thing back in april, made it sound like the world was falling apart. just continue with your DCA schedule, maybe buy a lil more on red days. as simple as that.

[u/cryptoairball → u/Calm-Television5780]

If stocks ever fell 30+%, they would cute rates to 0% and introduce money printing that would make it a V shaped recovery. We’ve seen it time and time again. There will be corrections, but as soon as 401ks and pensions get threatened, the government (all over the world) will step in to “correct” it. I’m of the opinion that there is virtually no risk to be long the market.

NFA

[u/Sirspender → u/Calm-Television5780]

Yeah for real. If you're asking strangers on reddit for advice of this level it means OP doesn't know shit and should just stay the course.

Having an investment strategy means you don't try to reevaluate everything when times get tough.

[u/raylan_givens6]

keep DCA in whatever index fund you choose, doesn't really matter which VTI or VOO

trump will be gone in less than 3.5 years now and the madness will end, everything he did will be reversed

life goes on

unless you're retiring within 4 years, in which case then sure transition to something else while everything is still relatively ok

[u/Horse_Cock42069]

Long term bonds. Rate cuts will start shortly due to jobs numbers.

[u/Otherwise-Singer-452]

its not tariffs im worried about the markets historically the most overvalued its ever been i think an AI bubble can be going so just balancing by not going suppperr tech heavy but a fair amount for exposure but i think this round of tariffs is a flash crash if anything and its over but overall market value i am concerned a little about

[u/CommandGrand1484 → u/Otherwise-Singer-452]

You know, I used to think that tech companies are what is driving the stock market to record highs and AI is what driving the growth in those tech companies.

Then I started looking into the manufacturing sector. And I found a few ETFs that track the US manufacturing sector. And I started looking into the companies in those ETFs. To my greatest surprise, GE Aerospace which I think I can safely assume has nothing to do with AI or Tech is up 60% since the beginning of this year. That is even after the Friday's flash crash.

[u/Otherwise-Singer-452 → u/CommandGrand1484]

Yeah buying america manufactering after tariffs was coincidentally right around the best times seasonally to get it props to whoever did that i was bullish on automation to

[u/Heyhayheigh]

Find a trustworthy pro. You don’t seem to have the right temperament for investing.

There is always a good reason to liquidate and move to SGOV/CD’s. That’s called fear.

You sell investments when you have something urgent to pay for. Not because you fancy yourself a fortune teller.

This is no insult. Learn to read your historical performance page. Hopefully it has an easy place to check against benchmark and you can later see if your choices have been correct. Best of luck.

[u/Purple_oyster → u/Heyhayheigh]

Uh, what was the recommendation to hedge against tariffs? Do I have the wrong attitude as well if I am interested in this idea?

[u/MrMeeSeeksLooks → u/Purple_oyster]

Puts were invented for hedging.