When just about every asset price trends upwards, and episodic falls in market prices are quickly reversed, risk management is an unrewarded activity.

But, as I argued recently in Don’t ignore the future that has already happened, the world has changed. Aging populations and the end of free money mean that future asset price growth will be modest and, when we see those inevitable episodic falls in market prices, they could be signalling more to come rather than being a buying opportunity. A bear market in some asset classes is certainly overdue.

In this future environment...