BEWARE OF ECHO BUBBLES
7 April 2010 by Cullen Roche
2 Comments
As always a must read here from Absolute Return Partners:
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Comments
These guys are good. Thanks for passing it along TPC.
Optionality (calls, puts, CDS, etc.) is clearly the way to go – secular bear markets are marked not necessarily by negative returns overall (more like anemic, the 1930′s being the major exception), but rather by elevated levels of volatility. With the S&P VIX at low levels relative to the past two years, the attractiveness of a long straddle strategy is very high.