‘Right Tail Risk’ Trade Put to Test by Megacap Earnings Deluge

With the US-Iran standoff keeping energy prices at levels that threaten the economy, investors have plenty of risks to worry about when analyzing possible outcomes that could damage portfolios.

Yet focusing too much on what can go wrong exposes investors to another big risk: Missing out on further gains if the stock market keeps ripping higher and higher. That type of outcome is often referred to as a right-tail risk, due to where it lands on a bell curve.