Professionals investors are still digesting the implications of last week’s explosion of volatility, while some retail traders are struggling to cope with the loss of years’ worth of work.
Meanwhile, one man, who was fortunate enough to have his warnings about the possibility of an explosion of volatility triggered by a dangerously large short-gamma positioning in markets documented by the New York Times, is sitting pretty as his illustration of the risks associated with the market’s dangerous sense of calm have proven to be almost eerily correct.
Ironically, Cole doesn’t see it that way. So he joined Erik Townsend during a special “postgame” session of Townsend’s weekly MacroVoices podcast to offer his two cents on the crash, what caused it, and what he expects will happen next. Continue reading