Consider going short or hedging your portfolio

Consider going short in bear markets by reversing the more common approach of buying low and selling high.

Until recently, such initiatives were something for only the rich, but not any more.

In a bear market, going short is one of the few ways of making money and financial spread betting is the one of the easiest and most efficient way of doing this.

Again, until recent times hedging was only really available to the larger institutions, banks and wealthy individuals.

As an example, if you believe the current associated property market minor recovery will not be sustained and there is more downturn ahead, you can hedge against the value of house prices dropping again by spread betting on the property market.

Smaller investors are now able to compete on the same level as the large financial players, giving equity markets new emphasis. In some ways, it is not too surprising that this point is not being heavily publicised in the financial media circles.

The reason being that in the event of investors gaining enough understanding of spread betting, they will be in a position to manage their own financial fate in a similar way to the big market players.