Now with the benefit of hindsight, one guest after the next is visiting CNBC and Bloomberg to show the world what assholes they are, by being condescending pricks — maligning ‘retail’, which is just another word for idiot trader, for getting caught in a black swan event long inverse volatility products SVXY and XIV.
Having spend nearly 2 decades on Wall Street, I am very familiar with the snobbery on trading desks or even from the simple assholes managing money for private clients. But it takes a special sort of asshole to go on teevee and flippantly dismiss those who just got ruined in inverse volatility products — equating their loss as non-events — chastising them for not reading the fine print in the prospectuses. I know 1 person out of 100 who actually reads these things. Please, go fuck yourself.
Here we have Dean Curnutt from Macro Risk Advisors saying the blowing up of these products was a ‘good thing’ for the Fed.
Watch this tone deaf man be an asshole on live teevee.
And here’s another one, Tim Freeman from Elevation LLC saying everything is wonderful and behaving as it should. This has a certain Baghdad Bob flair to it — some slickster calmly telling people everything is good, when in fact the fucking world is melting down around him. Wonderful.
And then Wall Street wonders why Main Street hates their guts.
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There are people that work for these issuers that don’t even read the prospectus. I called one guy out o an issue and he said “not true”, quoted the page number and the section. Response afterwards, “well if its in the prospectus then its true”. Disclosure: It was not a vol related product.
There’s some donkey out there saying he saw this coming during the trading day and loaded up on puts. Yeah … show me your blotter then I’ll believe you.
Will people continue to come to the US as a safe haven? Will it be different this time? Both dollar and treasuries have a lot of work to do yet.
I need to hear it from Cramer before I believe it.
I tried in the past to find options on XIV and I couldn’t. Unless this guy is going OTC, which I doubt because anyone with that make clout would not brag about that on the internet.
I’m sure most pros haven’t read the prospectii. Also, while I venture that people were lucky that XIV “worked” for so long (years), I wouldn’t have guessed the unwind would come so quickly. It didn’t give people a chance to cut their losses.
On the other hand, ZeroHedge talked about this EXACT Vol spike scenario 2-3 times this year. Also, it seems although *holders* were killed, it seems like many others were eager
boyal: options are availble on the VIX index, not on the ETFs or ETNs. However, they are expensive and they are European style, so you may not profit from short-term spikes if the market assumes things will settle again.
I am sure there is a lesson in here that none of us will learn, or will learn and then forget until it is time to learn it again.
The guy with the Dapper Dan slick hair kept calling it a rational event. As though he saw it ahead of time -what a prick. Why not take the other side and make many millions? CNBC should make their guests post their personal annual returns. This would eliminate asshats like this guy