Hedge-fund veteran Stephen Diggle says volatility index to stay elevated

Diggle said he's gained from the surge in volatility after buying December put options on the S&P 500 two weeks ago at strike of 2,200 as "crash protection."

Stephen Diggle, who co-founded a hedge fund that made $2.7 billion in the depths of the global financial crisis, said the resurgence of volatility is here to stay as bonds and stocks are both way overvalued.

Markets have been roiled by massive price swings over the past week, punishing investors who were betting on an extended period of calm. Stocks slumped and bond yields surged on concern a stronger US economy will stoke inflation and push up interest rates faster than the market has priced in. The Cboe Volatility Index (VIX)  surged to a more than two-year high on Tuesday. “In