Why ‘shorting volatility’ is now in trend, and what it really means

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SINGAPORE (Aug 3): As investors allocate their portfolios on hopes of continued global economic expansion, Natixis senior vice president, chief market strategist, David F. Lafferty is of the view that as of now, the entire world is short volatility.

In Natixis’ capital market note for July, Lafferty explains how super-low volatility in global markets have spurred a new sub-industry in shorting volatility with myriad exchange-traded funds (ETFs), inverse ETFs, and derivative products that usually have a ‘V’ in their tickers.

“During this period of low volatility, shorting volatility through VIX has... (Click here to read the full story.)