I’m Joe Tigay, portfolio manager of a volatility-hedged equity strategy at Rational Funds and a former VIX pit options market maker. I watch my kids play games, and one thing always happens when there’s a scarcity of resources—demand goes through the roof. Everyone wants what’s limited. From my years trading in the volatility pits, I’ve seen this same dynamic play out in markets countless times. This brings me to something economists call a “crack-up boom,” which works just l...
