Financial Models Go Haywire as 'Tail-Risk Trump' Lives Up to His Name
Trump rocks the world - and financial models.
Volatility, Fed Questions Remain in Trump Victory
This article is for subscribers only.
Trump has been called the ultimate "tail-risk candidate," so it's perhaps unsurprising that his electoral success has been greeted with outsized market reactions.
Stocks, bonds, and currencies were rattled by the vote, registering market moves that are supposed to be incredibly rare according to the normal distribution of probabilities that still form a bedrock of the financial models employed by large trading desks on Wall Street.