The Pitfalls of Portfolio Insurance

This chapter explores portfolio insurance as a hedging strategy that failed during the 1987 stock market crash, revealing its dependency on market liquidity. It also examines the evolution of financial products leading up to the 2008 crash, emphasizing the systemic failures and motivations that prioritized profits over stability.

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IN THIS EPISODE, YOU'LL LEARN:

01:18 - An in-depth analysis of the stock market crashes in 1907, 1929, 1987, 2008, and 2010
06:57 - The similarities between the FED’s monetary policy in 1929 and today
16:02 - How the stock market could decline by 22.6% in a single day in 1987
26:46 - How the incentives for homeowners and investment bankers in 2008 destroyed the stock market
33:25 - Why the next crash is going to look more like the flash crash in 2010 than any of the earlier crashes

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Scott Nation’s book, A History of The United States in Five Crashes – Read reviews of his book.
Scott Nation’s Amazon author page.
Scott Nation’s website.
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