Hedging: Necessity or Futility?
When I was a kid my father shared with me a newspaper article on investment. The article contained all the mathematics showing the amount of investment required for earning a certain pension some few years later, adjusted for the projected inflation. This cumbersome mathematics was nothing else but a retirement plan. At the time I was too young to understand this, but now I really understand how important it is to plan for the future. But in these volatile times, securing only for the future with just a retirement plan will not suffice. Hence, we see a new cumbersome mathematics gaining momentum, and that is hedging.







