Shorting volatility was a wildly profitable strategy over the last two years…until it wasn’t. Inverse VIX investors were wiped out in about a week. I can think of more than a few strategies that are employed widely by investors that have a similarly skewed risk profile.
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Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.