Stock Markets Give Up on Idea of Safety for Investors
This article is for subscribers only.
Imagine being on an airplane and the pilot makes the following announcement: “Ladies and gentlemen, due to increased competition, higher demands by our best customers, and complicated regulations, we can’t guarantee your safety. Thank you for choosing to fly with us!”
In the airline industry, everyone expects 99.99 percent reliability. They always have and always will. The securities industry once expected the same, too. Today, however, it has much lower expectations and accepts compromised performance.