CIO Blog : Tails of the unexpected VIII
Investment Strategy - December 2020
Fahad Kamal - Chief Investment Officer
Markets are exquisitely unpredictable, and each year events – financial, economic, geopolitical, or otherwise – occur which few see coming, but cause powerful ripples to the prices of securities. Instead of consensus-tinged forecasting, we continue an annual tradition of exploring which unlikely, but feasible, events are not priced by markets in the year ahead. These Black Swans, pushed to the overlooked “tails” of probability distributions, have the potential for outsized impact. If they occurred, how would our strategies perform? Do we have plans in place to protect portfolios against adverse market events? Are we positioned to prosper?
We hope you enjoy the eighth edition of our annual Tails of the Unexpected.
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