“Do not trust financial market risk models. Despite the predilection of some analysts to model the financial markets using sophisticated mathematics, the markets are governed by behavioral science, not physical science.”
– Seth Klarman

The Through Line: In recent days, we have been in the field a lot, connecting with clients and colleagues for a temperature check. (It’s tempting to prognosticate from a desk – but much more instructive to gather first-hand insights.) Instead of the upbeat mood we typically expect after two months of persistently rising markets and sturdy economic fundamentals, we found widespread anxiety about a variety of issues. There were too many factors to cover in one go, so this week we tackle the most pressing fears related to equity markets.

To read the full report, click here.

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