Scary Stories: What’s Your Favorite Tail Risk?

A new BofA report names various market tail risks — big scary things that could happen in an outlier scenario — and then suggests ways of hedging against them. Here is the list, which doesn’t feel all that tail-like to me:

  • Inflation/ $100bbl oil
  • Double dip
  • China bubble
  • Protectionism / USD crisis
  • Japan debt default
  • U.S. housing  / consumer recovery
  • No surprise

What would you add to the list?