The U.S. stock market has done a marvelous job in recent weeks of pricing in all of the optimism and so much more associated with the now highly anticipated pro-growth policies that are expected to come with the next administration. But by pricing in all that is wonderful, markets are effectively ignoring the need to position for the various other outcomes that are anything other than completely awesome. But let’s suppose something entirely different happens between now and the time all of the changes the market is now so eagerly anticipating actually start filtering their way through the financial system -18 months to two years from now at the earliest. Let’s just suppose that the European Union starts to completely come apart over the coming year along the way. What might investors be doing differently today to begin pricing in such a possibility?
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