Flight to Safety

As a response to significant risk, investors often undertake a "flight to safety." To benefit from this behavior, Direxion recently launched FLYT, which is an ETF based on a flight to safety strategy. The investments are split among utility and gold stocks, as well as bonds. You can find more information here, Direxion.

Tesla Destroys Shorts

Following strong results, Tesla shares hit an all-time high, jumping nearly 79% over the past year. There have been a significant number of skeptics who were short, and the recent jump further exaggerated their losses. In fact, short sellers in Tesla have lost over $8 billion in the last five weeks alone. See article here, WSJ.

Unexpected Coronavirus Impact

The World Bank issued a pandemic bond in 2017. The bond provides funding for the development bank’s Pandemic Emergency Financing Facility (PEF) if a the severity of an outbreak of one of six viruses meets certain levels. This is similarly to an insurance catastrophe bond. See article here, Marginal Revolution.