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    Tuesday, October 22, 2019

    Financial Softbank ousts Neumann in WeWork bailoit

    Financial Softbank ousts Neumann in WeWork bailoit


    Softbank ousts Neumann in WeWork bailoit

    Posted: 22 Oct 2019 08:04 AM PDT

    Tail risk insurance and order volume - paper profits and re-balancing asset classes

    Posted: 22 Oct 2019 07:44 AM PDT

    Does the inclusion of tail risk insurance improve the performance of a portfolio of periodically rebalanced asset classes?

    If you look at information like the Universa materials: https://www.universa.net/riskmitigation.html, they argue that including tail-risk insurance can jack up returns over time. I'm wondering whether they are right.

    I don't doubt that if you run the numbers and re-balance a simulated portfolio including tail insurance that the results will be better. I'm doubting that enough of the tail-insurance gains are realized to have the desired effect.

    For example, WSJ had a story on Universa a while back: https://www.wsj.com/articles/nassim-talebs-black-swan-fund-made-1-billion-this-week-1440793953

    and the tasty trade guys did a video arguing that while there probably were some paper gains on that scale, they couldn't have been realized because there wasn't enough volume of order flow. https://youtu.be/NEhEQD0YyF0?t=308

    Does anyone have a more informed view on this?

    submitted by /u/minus_epsilon
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