In this issue
A Perspective on Risk
Jump to section
- Article
- Abstract
- FINANCIAL CRISES OFTEN OCCUR WHEN MARKETS “CORRECT” FROM EXTREME PRICE LEVELS (I.E., WHEN SO-CALLED “BUBBLES” BURST AND POSITIONS ARE LIQUIDATED IN HASTE)
- EQUITY MARKETS ARE, GENERALLY SPEAKING, THE MOST LIQUID OF GLOBAL MARKETS. THUS, THEY TEND TO BE THE MOST SENSITIVE AND RELIABLE “RISK BAROMETERS” AVAILABLE
- ALL ASSET CLASSES BECOME HIGHLY CORRELATED DURING PERIODS OF ECONOMIC STRESS
- BE ALERT FOR THE PROVERBIAL “BLACK SWAN,” I.E., TAKE NOTHING FOR GRANTED. LONG-ESTABLISHED TRENDS OR PRICING RELATIONSHIPS DO NOT PERSIST AD INFINITUM. WHEN THEY BREAK DOWN OR REVERSE, RISK MAY BECOME VERY APPARENT
- SUMMARY
- ENDNOTES
- Info & Metrics
- PDF (Subscribers Only)
- PDF (Subscribers Only)
Similar Articles
Cited By...
- No citing articles found.