BlackRock’s Ronald Ratcliffe warns that traditional diversification can mislead wealth managers by overlooking macro-driven, second-order risks. He explains how geopolitical shocks, like the US-Iran episode, shift inflation, rates, currencies and risk premia across entire portfolios. Ratcliffe argues that whole-portfolio analytics and technology are essential to identify true exposures across public and private assets rather than relying solely on asset-class allocations.
