Overview

"If you're trying to build wealth, sharp market downturns are your worst enemy. And today, they're happening far more often: in the last 18 years, the S&P 500 has experienced sixteen violent market declines. Institutions and professional investors have mastered powerful hedging strategies for dramatically reducing the risks of market volatility. Now, you can do it, too--and you can't afford not to. In Buy and Hedge, two leading investment experts show how to apply hedging as part of a long-term program for growing and preserving your assets. CNBC Fast Money guest Jay Pestrichelli and seasoned financial industry veteran Wayne Ferbert show how to systematically protect yourself against violent downward moves while giving your portfolio maximum room to run in upward markets. The authors' techniques are easy to use, can be applied to most investment vehicles, and require surprisingly little ""care and feeding"" once implemented. You'll discover how to:   ·    Take advantage of the hedge-building mechanisms built into low-cost index funds ·    Invest in your ideas with confidence, because you've hedged the downside ·    Systematically manage portfolios for risk as well as return ·    Master and apply the ""5 Iron Rules of Buy & Hedge” ·    Use options to manage risk, not to create excess leverage ·    Generate more dividends ·    Effectively manage cash"

Full Product Details

Author:   Jay Pestrichelli ,  Wayne Ferbert
Publisher:   Pearson Education (US)
Imprint:   Financial TImes Prentice Hall
Dimensions:   Width: 16.60cm , Height: 2.40cm , Length: 23.20cm
Weight:   0.538kg
ISBN:  

9780132825245

ISBN 10:   0132825244
Pages:   304
Publication Date:   15 November 2011
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Hardback
Publisher's Status:   Out of Print
Availability:   Awaiting stock  

Table of Contents

Introduction     1 Part I: Introduction to Hedging and the Markets     7 Chapter 1: Life Is a Series of Risk-and-Return Decisions–and So Is Investing     9 Chapter 2: Emotion Is Your Enemy, So Bid It Goodbye     15 Chapter 3: Don’t Forget Why You Invest     21 Chapter 4: The Investment Game Isn’t Rigged, But...     27 Part II: The Immutable Laws of Investing     33 Chapter 5: Capital Lost Is Capital That Cannot Grow     35 Chapter 6: Risk Is What You Buy; Return Is What You Hope For     41 Chapter 7: Emotion Is the Enemy     45 Chapter 8: Volatility Is Kryptonite     53 Chapter 9: The Taxman Cometh      61 Part III: The Five Iron Rules of Buy and Hedge     65 Chapter 10: Hedge Every Investment     67 Chapter 11: Know Your Risk Metrics     75 Chapter 12: Constructing a Long-Term, Diversified Portfolio     91 Chapter 13: Unleash Your Inner Guru     103 Chapter 14: Harvest Your Gains and Losses     109 Part IV: The How-To and Basic Tactics of Hedging     119 Chapter 15: Hedging with Options     121 Chapter 16: What Is an Option?     125 Chapter 17: Option Positions     133 Chapter 18: Understanding and Using Options     141 Chapter 19: Risk Graphs: A Picture Is Worth a Chapter 20: Married Puts     165 Chapter 21: Collars     179 Chapter 22: Stock Replacement Tactic That’s Easy on Your Cash     193 Chapter 23: ETFs Will Look Great in Your Portfolio     205 Chapter 24: Portfolio Puts     221 Part V: Advanced Tactics     227 Chapter 25: Vertical Spreads     229 Chapter 26: Diagonal Spreads     249 Chapter 27: Managing the Cash in Your Portfolio     259 Chapter 28: Managing for Tax Efficiency     269 Chapter 29: Conclusion: Putting It All Together     277

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Author Information

Wayne Ferbert is a cofounder and principal of ZEGA Financial, LLC, a Registered Investment Advisor. He has spent his entire 17-year career in financial services, with 10 of them in the online brokerage segment with TD Ameritrade. In addition to managing business development as a member of the Senior Operating Committee at Ameritrade, which included M&A and market research, he ran product development. Prior to Ameritrade, he worked in planning and analysis roles at a Fortune 500 insurance firm and then a Fortune 500 bank. Wayne has an MBA in finance from Loyola University (Maryland) and a BSBA in finance from Bucknell University. He has his series 65 license. He resides in Ellicott City, Maryland, with his family. He has three daughters, ages 6, 8, and 9, and coaches their soccer team. Jay Pestrichelli is a cofounder and principal of ZEGA Financial, LLC, a Registered Investment Advisor. He has 20 years of experience in business management, with 12 years in the online brokerage field with TD Ameritrade and Datek On-Line. As manager of the Active Trading business, he helped drive it to become number one in trade volume of U.S. brokers. During that time he was a regular contributor as a subject matter expert on CNBC’s Fast Money , provided video interviews for CNN, and has been regularly quoted in publications such as The Wall Street Journall and SmartMoney. Licenses include series 7, 63, 65, 24, 4, and 3. Jay resides in Omaha, Nebraska, with his wife, Lynn, and 6-year-old son, Zander.

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