Investors are snapping up protection against a major market downturn, almost like they’re bracing for a big crash

On Monday, the Nations TailDex index, which tracks the market’s expectations for extreme events, surged to its highest point since the 2020 pandemic.

This index also reflects the cost of hedging in the options market against a drop of at least 30% in the S&P 500.

Meanwhile, one of the largest Black Swan funds available to US retail investors, the Cambria Tail Risk ETF (TAIL), spiked by 4.5%, the biggest jump since March 2020.

Is the market bracing for a Black Swan event?

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