Top global investor tail risks: Brexit & China

Be prepared for “a summer of shocks,” noted a recent Bank of America Merrill Lynch global investor survey. A ranking of tail risk shows Brexit in first place, followed closely by China devaluation/defaults.

tail_risks_baml_may

Indeed, as noted in Emerging Risks & Safe Havens we’ve seen escalating tremors in global markets since Bank of Japan’s 28 April global markets surprise.

Below is a short video where we use our cross asset FNA Correlations map to run predictive Brexit and China stress tests. The most resilient assets for each scenario: USD & US Government Bonds.

Video 1: Brexit & China Stress Test (4:22 min)

Thank you for tuning in, and feel free to suggest emerging risk themes to analyze.

 

 

 

One thought on “Top global investor tail risks: Brexit & China

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s