Shorting Volatility, Buying Bitcoin Are 2023’s Surprise Winners
- Those betting against volatility have earned 150% this year
- Higher-risk asset returns confounded gloomy forecasts for 2023
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The ‘almost-everything rally’ of 2023 is drawing to a close, and the picture is a world apart from what market mavens predicted at this time last year.
The consensus view back then was that a tough year lay ahead for high-risk assets, as interest rates rose, recession loomed and inflation stayed high. Instead, returns have been skewed almost overwhelmingly toward the riskiest parts of the market.