Grey swans emerge globally with the dawn of a Trump era

SINGAPORE (Jan 24): Tail risks, no matter how unlikely, are not entirely implausible, exceptionally rare, or unknown. Despite falling short of base case expectations, the improbability does not undermine their potential impact to financial markets.

State Street Global Advisors (SSGA) therefore calls such scenarios “grey swans” rather than black, and believes investors should be thoroughly reviewing their portfolios for adequate downside protection against them.

In the investment management unit of State Street Corporation’s IQ Insights report for the month of January, senior portfolio manager, investment solutions group (ISG) Lorne Johnson has identified a number of grey swans for 2017.

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