Markets Struggle to Price In Year-End Uncertainties

Political turbulence in the U.S. and Europe isn't reflected in investors' assessments of risk.

Diminished outlook.

Photographer: Zach Gibson/AFP/Getty Images

As investors position themselves for the final quarter of the year, markets have yet to price in the incertitude ahead. There are three reasons for this; all are related to the inherent difficulties of accurately determining risk premiums in this context of unusual economic, financial and political uncertainty.

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