A Bolt from the Blue
Thursday, October 12th, 2017 Categories: Bear Markets, Risk aversion, Tail Risk, Volatility
How to spot the next bear market
Provided that that causes of the next bear market in US equities originate in the US, investors should have time to adjust their asset allocation before the correction turns into a full-scale bear market. The necessary rise in excess volatility (equities minus bonds) takes several months and cannot happen without someone noticing.