Hedging against market corrections

[Jonathan Roveto]

Hey all! I have 4 SFHs and hope to get a couple more in the next year or so. I'm a buy/hold investor that generally gets a $350/month cash flow from properties (mainly saying this as to note that I don't invest based solely on appreciation). With that said, what is everyone's thoughts on hedging against market downturns? I suspect one good thing to do is simply to have reserves setup in T-bonds, and if a market downturn hits, sell the bonds and put the proceeds to (all of a sudden) significantly cheaper properties. I think that my cash flow and the fact that I have an actual day job should keep me in good shape in case of vacancies or having to lower rents for a few years. What other strategies do people use to ensure that you maintain good returns in the grand scheme of things when/if the market corrects?

[Russell Brazil]

Peter Lynch said more money has been lost by people anticipating and preparing for market corrections than have actual been lost in market corrections.

Im not saying dont be prepared, but I think we overthink this stuff a bit.

Your Tbills could be just as volatile as weve seent hem have a bad few months.