Risk of overcrowding remains while spectre of ‘tail risk’ has not gone away

Assumption that recent past will continue indefinitely is easy to make and perilous

By August 2007 the financial system was in grave danger

Outlook of expensive stocks and bonds contrasts with an ever angrier populace

Persistent slow growth and demographic factors entail low market yields

Fundamentals will hold sway after short-term bets on domestic politics

Europe lacks huge tech sector that has driven earnings growth stateside

This hugely difficult task may mean the continent has come as far as it can for now

Rob Arnott and Clifford Asness clash publicly over the role of ‘factor’ investing