Is it a good strategy to hedge against market volatility?

Hard to jump on the bandwagon and advocate for hedging as a foolproof method here. Don't get me wrong, in theory yes, hedging can provide a measure of protection against downside risk. But, and there's always a but, it's not all sunshine and rainbows. It goes wrong when folks start thinking of it as an Insurance policy. It's not. Insurance policies are designed to reimburse you for a loss, hedging doesn't work that way. In fact, it might not even cover all the losses at the time of a significant downturn.

Plus, let's not forget, hedging is a costly business in itself. Every hedge has a cost, thus minimizing your actual returns. So it becomes a real task to find the sweet spot where you're not just throwing away your potential profits to prevent a possible loss, which might or might not occur.

And, lastly, hedging is a complex business. Not everyone has the needed experience to pull it off successfully. In inexperienced hands, it can do more harm than good. So, anyone looking to utilize hedging as a strategy must be prepared for some homework.

So, to answer your question? It's not as black and white as some may imagine. Anyone else out there feel the same or am I alone in the wilderness here?