3min chapter

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Short Selling in the Age of Fraud | Carson Block

Forward Guidance

CHAPTER

The Importance of Risk Premium in Markets

We need to make sure that the pricing of risky assets you know e.g. Chinese equities reflects adequate risk premium to signal there's risk here. One of the problems with Russia is they have these commodity firms that are effectively when they're long in and short at the same time trying to capture a spread this is not risky but they sold it forward. China moves on Taiwan and we've got a really nasty situation there so what would with that geopolitical risk premium applied to China how what would that do to the price of i don't know that the Chinese index mchi that ETF or Alibaba buy do?

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