There is a guy named Mark Spitznagel who manages a Hedge Fund who made a fortune, specially during turmoil. He follows the Austrian School view and knows how to invest/bet during this soon-to-explode bubble.
Here's a video explaining his method:
To summarize, the average portfolio use 60% stocks, 40% bonds. Mr. Spitznagel on the other hand, allocate a higher part to stocks and use 1% for Tail Hedge (Put Options). If shit hits the fan he makes a lot of money and buys more stocks on the cheap, compensating the losses. If the market rallies, that 1% options won't hurt the portfolio.
Unfortunately he doesn't give much details on this video. Basically he promotes his fund (Universa Investments). As for his book The Dao of Investing, he doesn't explain either. Just to stay away from stocks when the S&P is above EMA.
Anyone here with knowledge of options could shed some light on that strategy?
Here's a video explaining his method:
To summarize, the average portfolio use 60% stocks, 40% bonds. Mr. Spitznagel on the other hand, allocate a higher part to stocks and use 1% for Tail Hedge (Put Options). If shit hits the fan he makes a lot of money and buys more stocks on the cheap, compensating the losses. If the market rallies, that 1% options won't hurt the portfolio.
Unfortunately he doesn't give much details on this video. Basically he promotes his fund (Universa Investments). As for his book The Dao of Investing, he doesn't explain either. Just to stay away from stocks when the S&P is above EMA.
Anyone here with knowledge of options could shed some light on that strategy?