Thomas J. Gordon

Lessons from the Volatility Shock of 2008

Just looking quickly at the portfolio that was suggested in 2007 I would guess that it did not avoid severe losses in the big 2008 downturn. I can think of only a few things a long investor could have been in that would have avoided enormous losses for august 2008 on: shorts or puts on almost anything, treasury bills, japanese yen, and selling calls like you mentioned. I like statistics. I understand statistics. Did it help you here take less losses from august 2008 on?