A Stop Loss Is Not A Real Hedge

See how an index hedge can keep you invested for stock upside with less stomach-turning turbulence. Advisor Mike Tosaw explains

TRUTH HAS A FUNNY way of punching you in the gut. I received my punch thanks to the 2022 decline in the stock market, which put a dent in the “funded” status of the 529 college-savings plans for my two sons, ages 16 and 14.

Buy and hold is all well and good if you have an infinite investment time horizon. Strict adherents will argue that mark-to-market gains and losses are just noise. Time will smooth out the ripples. But what if the funds are earmarked for an upcoming goal, like college costs or retirement?