Best Pensions,

Financial markets are inherently volatile, often experiencing periods of disruption and uncertainty triggered by both endogenous and exogenous events. Economic crises, geopolitical tensions, and unforeseen shocks such as the global financial crisis of 2007-2009 or the COVID-19 pandemic, can lead to significant market upheaval. These events not only alter the expected risks and returns of various investment strategies, but also pose unique challenges for investors, policymakers, and researchers who must navigate this uncertainty. Traditional risk measures, while useful, have often been insufficient for capturing the true dynamics of these market shifts, especially in times of crisis.