Four Major Tail Risks May Create Perfect Storm In Global Investing

Citi Research analyst Mark Schofield takes a look at four substantial risks for the markets on the horizon in his report dated September 16, 2013.

Global macro facing risks

These risks are geo-political (Syria), political (German elections), policy related (Fed meetings), and economic (China and emerging markets). According to Citi’s Global Macro Strategy weekly, Three Fat Tails, these risks are becoming “increasingly significant.”

A tail risk, in simple terms, is an event that is highly improbable by statistical standards, but happens nevertheless. Examples are...