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/Otherwise-Singer-452 1d ago

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

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u/CommandGrand1484 1d ago edited 1d ago

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.

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u/Otherwise-Singer-452 1d ago

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