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A dangerous trade that reminds experts of the 1987 market crash is riskier than ever





Stock trades 1987 Black Monday

  • The net position of investment products that track the CBOE Volatility Index — or VIX — has slipped into short territory for just the second time in history.
  • Goldman Sachs is worried about what might happen to the market if a spike in volatility ever causes this trade to unwind.
  • The situation is arguably more dire than the last time traders were net short, because the stock market has gone that much longer without a major reckoning.

Despite repeated warnings of a painful reckoning, traders can’t seem to wean themselves off one of the market’s riskiest investment strategies.

The trade in read more >>>

Source:: BusinessInsider.Com

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