Part 3/8:
Current Risks and Their Implications
Discussing potential risks in the market, Deuser points out that unforeseen shocks can pose significant challenges for investors. At present, the economy appears to be enjoying durable expansion, with inflation not being a major issue. Yet, he notes that unexpected factors, such as sudden shifts in federal policy or unforeseen financial shocks, could disrupt this stability.
Ultimately, Deuser believes that actively hedging against these risks in investments may yield better outcomes than solely positioning portfolios based on potential shocks. This perspective highlights the complexities of financial forecasting in a tumultuous environment.