Creating and Maintaining Antifragile Portfolios

How should investors manage their portfolios to withstand market crashes. In his March 2019 paper entitled “Managing the Downside of Active and Passive Strategies: Convexity and Fragilities”, Raphael Douady discusses how to construct an “antifragile” portfolio given that most equity market risk is not readily observable. He describes ways to monitor the probability of a new crisis. Based on in-depth analysis of market behaviors during past speculative bubbles and other crises, he concludes that:

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