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ESG: The 40 Trillion Dollar Bubble | Mark Neuman

Forward Guidance

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Market Stress, Correlations, and Portfolio Emergencies

This chapter explores the effects of market stress on various types of stocks and how they correlate with portfolio emergencies. It delves into the sell-off of small-cap stocks during market stress, while larger companies like Apple remain comparatively less affected. The speakers also discuss the ease of raising cash by selling highly liquid stocks such as Apple, as opposed to the potential challenges faced when selling less popular stocks like Exxon Mobil. Furthermore, the chapter touches on the influence of specific events, such as rate hikes, on the need to raise cash from portfolios.

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