Dymon Asia Capital's Yong Says 30% of Portfolio Wagered on Tail Risk Amid Market Complacency

The video discusses the impact of trade tensions between China and the US on market volatility, highlighting underpriced options and market predictions. It examines Hong Kong's financial market status amid political instability and explores investment strategies focusing on tail risk and market dislocations.

What has contributed to the increased volatility in the markets this year?

• Stable political climate

• Decreased interest rates

• Trade tensions between China and the US

• Improved economic conditions

Which markets are mentioned as having underpriced options?

• Real estate and commodities

• Currencies and interest rates

• Energy and utilities

• Technology and healthcare

What recent event has raised questions about Hong Kong's status as a financial hub?

• District elections favoring pro-Democratic parties

• Trade agreement with the US

• Increased foreign investments

• New tax regulations

What percentage of a portfolio is suggested to be allocated to tail risk management?

• 30%

• 20%

• 40%

• 10%

How does the speaker view the potential for future market dislocations?

• They will be completely unpredictable

• They will occur more often but be less impactful

• They will be less frequent but more significant

• They will remain the same as in the past