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Thursday, July 8, 2010

Looks Like The Black Swan Trade is Getting Crowded

It's been  months (first time was in april) since I first wrote about using volatility etns as a hedge against extremely turbulent markets. It seems that investing in these instruments has become quite fashionable as reported by Jason Zweig in the WSJ: (my comments in blue and my bolds)

Hazardous Waters: Should Investors Bet on Rising Risk?