The Risk Of A Crash Has Never Been Higher?


That’s not to say that there can’t be a tail risk event in the next day, month or year. There certainly can be, but one should not be expecting an actual tail risk event simply because of high SKEW. Just because option traders are pricing in a black swan event does not mean they will be correct. Which is another way of saying the “market” is not always right. Far from it.

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Disclaimer: At Pension Partners, we use Bonds as our defensive position in our absolute return strategies for all of the above reasons. Bonds have provided a more ...

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