Opinion | In a world fraught with risk, Trump will add to the bumps
Amid increasing geopolitical uncertainty and trade tensions, investors are counting on the US central bank to keep printing money
Risk can be defined as the possibility of the occurrence of an event or condition that would negatively affect our well-being. One scans for risks to try to avoid or mitigate them. The first thing to remember is that risk cannot be eliminated; it can only be managed or hedged.
In a static zero-sum system, one man’s risk is another man’s opportunity. If you squeeze one side of a balloon, the other side will expand. However, the balloon itself may burst – such risk is not improbable. There are always costs to hedging risks, and if you choose the wrong hedge, you could lose even more when an unexpected event occurs.
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Shanghai hit by heatwave amid extreme weather in eastern China
