How is a household like a hedge fund?
While hedge funds are aware of how leverage and low liquidity can pull them into deep markets, advisers need to keep in mind how this risk dynamic can play out within households.
When things are going badly in the market, a household and a hedge fund create the same sort of market risk dynamic: a downward leverage- and liquidity-driven cascade. Hedge funds are acutely aware of how leverage and low liquidity can pull them into deep waters. Advisers need to keep in mind how th
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