Doom and Gloom? Consider Hedging with Intrade
Has the late unpleasantness got you down? The perfect solution is right in front of you. Use Intrade as a hedge. Using money to offset real hardship is a time-honored trick. Insurance companies rely upon this approach to smooth over all manner of downers and upsets. So if you feel strongly about the election or the financial crisis, why not buy a little insurance of your own?
Hope the economy pulls through? We all do. But if it doesn't, owning a little US.RECESSION.08 will help smooth the rough ride. What better way to counter your own personal recession than a little extra return when it hits?
It doesn't end there. Why not hedge against higher taxes on "Highest Marginal Single-Filer Fed Income Tax Rate to be Equal or Greater than 36% in 2009 Tax Year"? Boy, higher income taxes. That doesn't sound fun. But if it happens, an investment of $41 on 2009.INCOME.TAXRATE.>36% today will be worth $100. You could even invest just enough to cover a tax hike. No, really. Why not?