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The Dynamics of Chaos in the Equity Portfolio
With this liquidity situation paired with, and I guess it's partly or largely driven by the passive framework and a rising volatility environment, you reach a point where chaos ensues. And you believe we've kind of already crossed that threshold around 30 percent a while ago. For me, chaos under those conditions is a discontinuous market that prevents you from hedging your exposures. We have run simulations that suggest that what we just saw in terms of both the correction in March and the recovery from March are well within expectations.