Stressing Scenario Analysis
What happens when diversification stops working? As correlations shift and traditional assumptions come under pressure, scenario analysis and stress testing are helping investors rethink how portfolios might behave in a changing market regime.
Thomas Verbraken and Monika Szikszai explain how scenarios are constructed, how history is used as a reference point rather than a forecast and why storytelling plays a central role in understanding risk. They also discuss “Triple-Red” environments — when equities, bonds and currencies fall together — and what such regimes could mean for investors preparing for future shocks.
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Perspectives Podcast
From equities and fixed income, sustainability and climate change to private assets, such as commercial real estate, join us as we explore the issues global investors are talking about and uncover insights from industry experts that help keep it all in perspective.
Scenario Analysis: When Stocks, Bonds and the Dollar Fall Together
Triple-Red scenarios — when correlations break down and diversification fails — are back. Drawing on historical lessons, we stress test how economic tensions could hit multi-asset-class portfolios.
Scenario Analysis in Japan: Policy Normalization Meets Political Uncertainty
Japan’s rate policy meets election risk. Explore scenarios where Bank of Japan normalization could spark “Triple-Red” losses across bonds, equities and the yen — and what it means for portfolios.
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