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Notices
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Paul OBrien (not verified)
26th September 2020 | 9:32am

I broadly agree. But:

Capital structures are not fixed. If investors prefer debt claims, companies will lever up to provide more. The remaining equity will be riskier, sure, but also offer better expected returns.

Anti-fragile strategies are great. They just aren’t macro consistent. The world is fragile, and so will be the average portfolio. Most investors will have to accept that.