Fat Tails, Black Swans, and Serial Crises: Planning for a Volatile World

Vodra, Richard E.
March 2009
Journal of Financial Planning;Mar2009, Vol. 22 Issue 3, Special section p44
Academic Journal
The article discusses a survey of the Financial Planning Association Research Group. The survey focused on crisis planning. Potential crisis scenarios included the possibility of a financial depression, hyperinflation, severe climate change, shortages of oil or water, epidemics, large-scale terrorist attacks, and the insolvency of the U.S. government due to problems funding the Medicare or Social Security programs. All financial planners surveyed expected at least one such crisis to take place before the year 2020.


Related Articles

  • Gender Differences in Personal Income and Financial Risk Tolerance: How Much of a Connection? Roszkowski, Michael J.; Grable, John E. // Career Development Quarterly;Mar2010, Vol. 58 Issue 3, p270 

    Prior research indicates that relative to men, women generally have lower incomes and typically are more risk averse. In a sample of the clientele of financial planners, men had higher personal incomes and exhibited greater financial risk tolerance, which is consistent with previous studies. The...

  • Does Your Firm Have Your Back? Degenhardt-Burke, Carri // On Wall Street;Dec2011, Vol. 21 Issue 12, p45 

    The article focuses on the need for support in times of extreme market volatility. The author discusses the characteristics that should be possessed by financial advisors in helping their clients deal with the turmoil in the financial markets. She also explains the importance of support given by...

  • The fundamental truths of market volatility. Keavney, Robert // Money Management;3/6/2008, Vol. 22 Issue 8, p30 

    The article discusses the effects of market volatility on the financial planners in Australia. The author expresses that planners would be hesitant to undertake short-term movements while others maybe aggressive in asset allocation and selection of assets on returns. He suggests the planners to...

  • Europe's old wealth seeks new home in Asia.  // South Asian Post;4/26/2012, p21 

    The article reports that many American and European affluent families like Genoa's Spinola family are opening family offices in eastern countries such as Singapore due to the opportunities that it offers them to increase their wealth. It mentions that the financial crises in the West and Asia's...

  • Experts Advise Investors to Accept Short-Term Volatility. Barney, Lee // Plan Advisor News;2015, p32 

    The article reports the move by investment managers and strategists in the U.S. as of August 2015 to urge retirement plan advisers to counsel participants to remain invested despite the market volatility due to bad news in Greece and China. Also cited are comments from Paul Blease and Brian...

  • Adjusting to the New Normal. Finley, Daniel C. // Journal of Financial Planning;Jan2010 Practice Management, p26 

    The article offers various strategies on how a financial planner can connect better with his client in the middle of a fluctuating market. These strategies include adjustment to the mentality of the investor which means exploring the fears of the investor regarding his financial portfolio....

  • Holding Pattern. WELSCH, ANDREW // On Wall Street;Nov2015, Vol. 25 Issue 11, p12 

    The article focuses on the clients wary for global economic turmoil, volatile markets and uncertainty on interest rates that affects the financial advisors opportunities in equity market.

  • Strategies for 2012 and Beyond. BOWEN JR., JOHN J. // Financial Planning;Dec2011, Vol. 41 Issue 12, p29 

    The article discusses strategies for financial planning experts as they face uncertainty and volatility in 2012. Financial advisors are told to refocus their efforts and reflect on the risks that they face and determine the most attractive opportunities worth pursuing. They are also encouraged...

  • Advisers plan varied routes to navigate choppy market. McLean, Mike // Journal of Business (10756124);12/2/2010, Vol. 25 Issue 25, pA11 

    The article presents views of several financial consultants on the uncertainties in the securities markets worldwide. According to Kelly C. Ruggles, market volatility is the new norm and a combination of two different investment strategies can reduce exposure to volatility. Greer Gibson Bacon...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics