Wednesday screencast: cash calls

• abnormalreturns
• June 29th, 2011

James Montier is a must-read around here and his latest post is no exception.  In his latest piece he looks at the desire of investors to hedge against tail risk.  Tail risk is a hot topic and a so-called black swan ETF is on the drawing boards.  Montier compares the three main ways one can accomplish this.  In his view cash comes out as an attractive alternative to the cost and complexity of options-related strategies.  Another strategy is keep valuation squarely in mind as you invest.  In today’s screencast a look at ways to tame tail risk.

Items mentioned in the above screencast:

James Montier on tail risk.  (GMO)

A “black swan” ETF is in the works.  (Forbes)

How cash can is the ultimate hedge.  (Pragmatic Capitalism, Random Roger)

How a focus on value can protect against drawdowns.  ( Credit Writedowns)

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