Which of the following is NOT a common method for hedging investments?

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Investing in bonds is not typically considered a common method for hedging investments. Hedging involves strategies specifically designed to reduce or offset potential losses in an investment, which can include using derivatives or taking opposing positions in related securities.

Buying options is a common hedging technique that allows an investor to secure the right, but not the obligation, to buy or sell an asset at a predetermined price, thus providing a cushion against adverse price movements. Selling futures is also a widely used hedging tool, where an investor locks in prices for future transactions, protecting against price fluctuations.

Taking a short position, which involves selling a security that one does not own with the intent to buy it back later at a lower price, is another direct way to hedge against declines in the value of an asset.

In contrast, while bonds can be a conservative investment choice and may provide certain safety during market volatility, they do not inherently serve the purpose of hedging against losses in other investments. Thus, they do not fit into the same category as the more direct hedging strategies mentioned.

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