With equity and bond market valuations near all-time highs, defaults on the rise and central banks around the world set to drain liquidity from the financial system, the risk of a major decline in asset prices over the next couple of years has increased significantly. At the same time, valuations have given investors few good choices to earn returns without taking much more risk and exposing themselves to large losses. A possible solution to this dilemma, and the subject of this article, is to incorporate a tail-risk hedging strategy into the portfolio. By incorporating a tail hedge strategy, investors can increase their allocation to risky assets to add returns while protecting against the “black swan” events that result in large losses. There are numerous other benefits to tail hedging which are also discussed in detail in the paper.