Building a Long Volatility Strategy without Using Options – Part II
By Nicolas Rabener, CAIA, CEO & Founder FactorResearch.
INTRODUCTION
Almost all asset classes are implicitly short volatility as they are bets on the economy doing well. Occasionally there are periods like during the tech bubble in 1999 when stocks were volatile and going up, but mostly increasing volatility means markets are declining or crashing as a result of deteriorating economic conditions.
More from CAIA Association
