Tuesday, May 29, 2018
What keeps me up at night - "The glaringly evident that we have decided not to see"
"The hardest thing to explain is the glaringly evident which everybody has decided not to see." Ayn Rand
The table is a short list of issues that should cause concern for any investor. A growing problem is that many are not focusing on the broader return implications for these risks, the chance for contagion and second order effects. Perhaps we have not had the right catalysts to create focus. Perhaps we are being too dramatic in the current risk-on environment, or maybe these are just not really big problems.
Nevertheless, these issues are keeping me up at night and they have not been given enough weight when measuring the potential return to risk for even diversified portfolios.