How do you protect your portfolio in this market?

Hi Everyone,

My Dad posed me the question over dinner the other day.

How does one protect their long term (Australian) portfolio from this apparent bear market?

My first thought was to launch into a discussion about CFD's and how they can be used to short individual stocks and indices. Or may be explain about futures or options and mention index puts or covered calls etc.

But Dad doesn't like complexity and keeps things Simple wherever he can in matters financial. A Buy and Hold strategy has done well up to till recent months but is it appropriate for the near future?

I'd appreciate some thoughts on what I should recommend as a straightforward way to hedge without necessarily selling out and realising capital gains.

Thanks in advance.

Kenny

If its a long term portfolio, then why should you be worried about it "in the near term"?

Also if you purchase something as a hedge now (i dunno what) then you would realise cap gains on that when you sell, providing it moves the correct way