If It’s the Big One for Stocks, Hedgers Are Looking Unprepared
- Even as VIX rises past 20, cost of tail-risk hedges slumps
- Rush to protect could occur if trade skirmishes escalate
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Maybe the warnings got boring.
Trade tensions between the U.S. and China are escalating, the Nasdaq 100 Index is set for its ninth straight 1 percent swing, and safe havens are in fashion around the world. Yet hedging activity is decidedly muted, all things considered.