Included in realized losses in 2016 was a loss of $2,663.9 million realized in the fourth quarter when the company, recognizing fundamental changes in the U.S. which obviated the need for defensive equity hedges, discontinued its economic equity hedging strategy, closing all of its short positions in the Russell 2000, S&P 500 and S&P/TSX 60 equity indexes effected through total return swaps.
Donald Trump wins, Tails risks, 1 in 100 year storms, all vanish!!
Debt deleveraging?
All done.
"worried about the speculation in financial markets and the potential for a 50-100 year financial storm"?
No more.
"However, we have warned you many times in our Annual Reports of the many risks that we see and the great
disconnect between the markets and the economic fundamentals."
No more.
"Most investors consider the
2008/2009 recession and crash to be a once in a generation event – and it’s over! We differ because we think we
escaped the serious adverse consequences of that recession as a result of huge fiscal stimulus from the U.S., even
greater fiscal stimulus from China and the reduction in interest rates to 0% with massive monetary stimulus in the
U.S., Europe and Japan through QE programs. There is nothing to fall back on now if the U.S. and Europe slip back
into recession."
Now we have Trump!
"The potential for unintended consequences, and therefore of pain, is huge."
There can be no pain with Trump as president.
Vinod
