Overview As a risk manager or manager of institutional capital, it is critical to have a firm grasp on major challenges and likely outcomes. Building and maintaining a portfolio based on false assumptions can be disastrous. To make this installment as useful as possible, we aim to address some of the underlying assumptions making the rounds in the markets. “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” -Mark Twain  “An economist is a portfolio manager who never marks to market.” -Howard Marks
In the past, to be a sea power one required a navy. Likewise, to be a land power, one required an army. Currently, neither of the prior statements are true and the implications are massive, and they will soon be rippling through the economy.