Far "more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." – Peter Lynch There are few things more alluring in the investment world than the thought of predicting and profiting from the next black swan. Shorting, buying out of the money puts, going long volatility is unbelievably tempting. If you’re right, the payoff can be immense and you’ll be one of the few to reap the rewards; more satisfying for many: everyone else will be losing money and wrong. But calling the next crash — even when you’re right — is a tricky business to say the least. Timing is everything when it comes to predicting financial Armageddon. And as black swans are by definition extremely rare, getting the timing right can be unbelievably difficult. But that doesn’t stop many from trying, for the siren song is too great. With the 2008 financial crisis fresh in our minds, providers of exchange-traded funds did what they ...
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