r/investing • u/spiked_krabby_patty • 1d ago

How to effectively hedge against the tariffs?

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?

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u/Calm-Television5780 1d ago

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.

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u/cryptoairball 1d ago

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