1/ There is a growing narrative that the market's apparent confidence in Trump means all is well.http://marginalrevolution.com/marginalrevolution/2017/02/vix-show-far.html …
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3/ There are two main problems with the "market likes trump --> all is good" story: externalities and insurance costs.
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4/ Externalities: what *doesn't* the market price well within its time horizons? For example lost economic value of future grad students
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market underpricing black swan events i.e. tail risks, per usual
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Markets are underpricing ALL RISKS. Cannot see this ending well
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