Do You Use Commodities As A Hedge Against Stock Market Volatility?

Discussion in 'Commodities Forum' started by Chartman, Jul 27, 2018.

  1. Chartman

    Chartman Senior Investor

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    Whether looking at oil, gold or any other type of commodity, do you actively use them as a hedge against potential stock market volatility? Recently we have seen some significant investors switching to gold. This money flow is likely to continue in the short term until we see a resolution to the ongoing trade tariffs dispute between the US and the rest of the world. Is it time to look at commodities?
     
  2. Buyonthedips

    Buyonthedips Senior Investor

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    Personally I have never used commodities as a hedge for my investments. If I don’t like the markets, simple, I sell up and withdraw all or part of my money.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    I prefer to split my investment funds between third party managers and those managed by me - I focus on the stockmarket and do not take into account commodity hedges. As the member mentioned above, if I dont like the markets I will simply increase my cash holding until such time as I am happy to go back in.
     
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