Risk assets will win out in a series of unfortunate events

A series of unfortunate events

In successive volumes of Lemony Snicket's A Series of Unfortunate Events, the Baudelaire orphans are besieged by their distant relative Count Olaf, who attempts to steal their fortune. Of course, the Baudelaires outmanoeuvre him and manage to preserve their wealth.

Many investors have not been so lucky, as the markets have also suffered a series of unfortunate events. These events have been varied, their collective weight tipped the market into a steep decline. The first volume in the markets’ series of unfortunate events is Europe. Many nations, not just in the periphery, have failed to deliver on structural reforms which would produce self-sustaining growth.  European economic data points to a continuing slide downward towards deflation. Sanctions against Russia have weakened growth prospects, and the fighting over acceptable deficit levels ha...