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Alpha Exchange

The Alpha Exchange Q1 2023 Review

Apr 3, 2023
30:51

Podcast summary created with Snipd AI

Quick takeaways

  • Gold serves as a reliable asset and hedge for risk exposure when rates and the dollar decline while stocks fall.
  • Shorting VIX ETPs can generate carry during high implied volatility levels and a Contango term structure, providing protection during risk-off periods.

Deep dives

Gold: A hedge against inflation and deflation

Gold is often considered both an inflation hedge and a deflation hedge, but its performance is actually tied to the dollar and interest rates. When rates and the dollar rise, gold tends to underperform. However, in scenarios where rates and the dollar decline while stocks fall, gold can serve as a reliable asset and provide a hedge for risk exposure.

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