Tail-Risk Hedges Sought in Another Dimension

How to take market risk and protect against liquidity crashes.

With the S&P 500 index close to record highs and U.S. Treasury yields near record lows, world markets increasingly resemble the ball-on-top-of-a-hill diagram used to illustrate an unstable state in popular science books. Roll to the left for a cataclysmic stock market collapse; roll right for resurgent global growth, soaring equity prices and a crash in bonds.

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