Investors who bet on calm stock markets lose out as volatility returns

The Telegraph -

The Telegraph—Wild swings in global stock markets and the return of volatility caught out investors who had been betting on continued calm on Wall Street.

By betting on calm, did investors worsen the stock market fall?. XIV – a way to bet on low stock index volatility – was a beautiful investment until it really wasn’t Back in 2008, the non-financial world had to digest a lot of jargon in a hurry – collateralised debt obligations (CDOs), asset-backed securities (ABSs) and the rest of the alphabet soup of derivative products that contributed to the great banking crash. This week’s diet has felt similar. As the Dow Jones industrial average twice fell 1,000 points in a day, we have had to swallow tales about the...