(Street Register) - Jeffrey Gundlach, CEO of DoubleLine Capital said that investors need to take yield curve inversion very seriously because the indicator is reliable over time.
By Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.
For decades, financial risk modeling has been based on standard deviation assumptions, such as the Gaussian Distribution, modern portfolio theory, and bell curve risk models. While this approach works great in fields like science, it has shown significant shortcomings during extreme market events. Why?
just 10 stocks are currently responsible for around 80% of market movement, pushing the index to its highest concentration levels in 50 years. The conversation explains how the S&P 500's market-cap weighting amplifies this effect, making the index less diversified than it appears.