[flagged]
It is literally an "idiot" put, betting on idiocy.
* In deferrence to Boglehead philosophy, hedging bets is a fool's errand because the idea is you lose your money the more you touch it. Make a plan, invest, and then hold hold hold staying the course come hell or high water.
* If you truly want to reduce or eliminate risk, the best way is to simply cash out. A $1 bill will always be a $1 bill with absolute certainty.
Some people want to come out neutral or lose a guaranteed small amount, rather than the chance to lose or gain the same amount. I'd pay $5 to avoid having to flip a $10k +/- coin. Thus, if I knew I would lose $10k if X got elected, I could place a $10k bet for Y to win.
Most people. "Loss aversion refers to a cognitive bias in which the same situation is perceived as worse if it is framed as a loss, rather than a gain" [1].
> I'd pay $5 to avoid having to flip a $10k +/- coin
Risk aversion. Seemingly related, but in fact quite rational.
It is commonplace to take various financial positions that limit downside. It is one of the primary uses of options and futures.
> In deferrence to Boglehead philosophy, hedging bets is a fool's errand
The flagged comment didn't say that hedging was idiotic, but implied that the specific hedge mentioned was idiotic, yet didn't give any reason for calling it such.
>$1 bill will always be a $1 bill with absolute certainty
This is money illusion.