Eight Great Opportunities for Advanced Investors
Consider cheap tail risks.
Investors face two forms of risk:
Predictable risks: Anything from the ebb and flow of the business cycle to how macro-economic decision making affects the pricing of assets. (Note: Macro-economics analyses general economic indicators such as unemployment rates, interest rates, inflation rates, and so on, in an attempt to predict trends in the economy as a whole.)
Unpredictable risks: Categorising these risks into two additional groups creates: Events that people have some sense may happen and events that people have absolutely no idea may happen or little ability to predict.