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March 10, 2020


Robert Mitchell

"traders trying to maintain stable volatility in their portfolios sell stocks when volatility rises. "

You can triple-short the S&P 500 index and sell volatility, and you should make money when volatility rises.

"Returns might be non-ergodic."

Exchange Traded Products tie your individual time series to the average of a few high performers. Currently, bond ETPs are rising as S&P 500 index shares fall, so you can use ETPs to hedge other ETPs.

"With conventional monetary policy almost maxxed out, central banks can do less than before to support equities."

The Fed should use currency swap lines again and open credit facilities to equity collateral, as well as outright buying assets. The only real uncertainty is how much force the Fed will use. Last time, Dudley laid out the plan to use more force than the market thought necessary. How likely is it they will use that strategy again? the Fed can act as a "value investor" putting a floor on stock prices if it wants to.

James Peach

So a long term buy and hold investor should buy buy buy the all share??

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