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Precise Investors

Tuesday, June 15, 2021
Trading

Money is rushing into ‘the most dangerous trade in the world’

It shouldn’t be too surprising that the XIV exchange-traded note, which is designed to deliver the inverse performance of the well-known CBOE Volatility Index (or the VIX ) on a daily basis, is attracting fresh attention after surging as much as 87 per cent this year.

But some caution that investing in the exchange-traded product now could be deeply risky.

This could be “the most dangerous trade in the world,” according to macro strategist Boris Schlossberg of BK Asset Management. “It’s already had a massive runup because we’ve had very low volatility,” but at this point, “it’s very likely that volatility is going to increase,” Schlossberg said Thursday on CNBC’s ” Trading Nation .”

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