3 strategies to try and avoid losing money in a stock market crash
Image source: Getty Images
According to data from Bank of America, hedge fund managers think the most likely cause of a stock market crash is inflation. This seems plausible to me, but what can investors do about it?
I own Diageo (LSE:DGE) shares in my portfolio and I think inflation’s one of the biggest issues for the company right now. But there are a few strategies available to me to offset the risk.
Hedging
Hedging involves buying something that’s likely to go up if share prices fall sharply. Exactly what that is might depend on what causes the stock market to crash.
One way of doing this is via the options market. I could either buy put options on Diageo shares directly, or I could look to bet…
