Market has witnessed downward movement in last week. Trigger was statements made by leaders of USA and North Korea on geo political tensions that can lead to war between them. Neighboring countries Japan, South Korea and China may also be get affected. It has given a reason for selling globally that includes Indian market as markets globally have made good gains since begging of this year and trading at their life time highs.
Geo political issues keeps arising in global arena time to time. Nobody can certainly predict the quantum of severity and impact and more importantly the time it takes to settle down. To to minimize impact portfolio or position certain hedging techniques are used. These hedging techniques have cost associated and professional people like mutual fund, portfolio manager or hedge fund manager adopts them.
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