Alsadius comments on Mathematicians and the Prevention of Recessions - Less Wrong

8 Post author: JonahSinick 25 May 2013 04:12AM

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Comment author: Alsadius 26 May 2013 09:22:00PM *  0 points [-]

Probably, but it doesn't need to be a pure strategy. A normal portfolio hedged with a bit of crash insurance in the form of deep-OTM puts can be a sensible play in ordinary times. I don't know how many people actually do that, though - judging by the market size, not many.