Third quarter’s edition summarizes five articles on portfolio risk. The first article highlights the trade-offs among diversification, active risk, and excess return in active equity allocations; the second analyzes asset class correlations during tail events; the third highlights how the current state of trading liquidity could exaggerate the next downturn; the fourth argues that hedge funds do protect investors during market shocks; and the fifth reviews how commodity long/short indexes improve a traditional portfolio’s risk-adjusted return.

Second quarter’s edition summarizes five article on trade policy. The first article finds that protectionism has failed as a US policy across various time periods; the second analyzes commonly held misconceptions about trade deficits; the third argues that although the risk of a trade war has increased in recent months, it remains low; the fourth examines the difficulties in relocating supply chains across countries and regions; and the fifth quantifies the potential impacts of a US withdrawal from NAFTA.