He also knows - and if he doesn't he should - that geographical diversity in a pension portfolio is an essential hedge against harder times at home.
The art market grew during the 20 years preceding the Civil War, then boomed as investors sought art as a hedge against inflation.
Options are a great way to hedge against your existing positions to decrease risk.
The best thing about my cave, however, is that it's hidden behind a hedge of red bushes, so the curious tourist or hiker is very unlikely to find it.
They also wanted something that would provide a hedge against inflation.
This swap would be expected to hedge against the rising financing cost of their short term debt.
The savings ratio is also influenced by inflation (rising prices), because people feel a greater need to save as a hedge against higher inflation.
In other words, investors hedge one investment by making another.
index-linked gilts are a useful hedge against inflation
Diversifying your portfolio is a hedge against the down times.