“But are you long volatility?”

As many of you know, when I confront mega-pessimists I like to ask them “But are you short the market?”  Not once in my life have I heard a satisfactory rejoinder to this query.  (The last answer I heard was “I will be!”.)

I now have a new question for those who see a reasonably high likelihood of AGI.  Of course AGI could wreck the world, make the world a whole lot better, or simply overturn multiple sectors of the economy, in both good and bad ways.  If you believe in AGI, typically you believe it will matter a lot, though there is considerable disagreement on the cost-benefit ratio.

So basically you should go long volatility, both of the aggregate market and sector-by-sector.

Can I call them AGIers?  (“Aggies” is already taken.)  AGIers ought to be long volatility.

Are they?  I have started asking this question, and I plan to continue the practice.


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