Recorded live from the Cboe RMC floor in Munich, Cem Karsan sits down with volatility veteran David Dredge for a deep exploration of what truly drives risk. From the crash of 1987 to today’s era of correlation, Dredge reframes volatility not as fear, but freedom. Through his F1 “brakes” analogy, he reveals why protection enables performance, and how convexity builds resilience in an uncertain world. Together, they trace the arc from structured-product flows to demographics, fiscal repression, and the coming global “Hunger Games” for savings. A masterclass in compounding through uncertainty. ----- 50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE ----- Follow Niels on Twitter , LinkedIn , YouTube or via the TTU website . IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here . And you can get a free copy of my latest book “ Ten Reasons to Add Trend Following to Your Portfolio ” here . Learn more about the Trend Barometer here . Send your questions to
[email protected] And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Follow Cem on Twitter . Follow David on X. Episode TimeStamps: 00:01:29 – Cem introduces David Dredge live from Munich. 00:03:28 – Dredge recalls arriving in Asia before the 1987 crash. 00:05:06 – The F1 brakes analogy—why protection enables speed. 00:07:45 – The “preserve and enhance” portfolio that defied 65/35. 00:10:57 – Rethinking 60/40 and the illusion of diversification. 00:14:33 – Cem on $500 trillion of correlated assets. 00:17:22 – Why covered calls lose to convexity over time. 00:19:14 – Misreading 2022: correlation, not equities, was the risk. 00:21:20 – When diversification fails, only convexity endures. 00:27:13 – Value investing in volatility—buying what others suppress. 00:37:48 – Euro...
