Even without a collapse, changing asset prices can influence consumer demand, and so economic stability, through the "wealth effect": rising share prices might make people feel richer and induce them to spend more.
What Tobin suggested was that we think of financial market in terms of a sort of ultra-short-term equilibrium, before changing asset prices have time to have any effect on the real economy.
Climate change, policy evolution and changing farm asset values are just a few of these factors.
However, as The Economist went to press, there were no indications whether Robert Gates, America's secretary of defence, would sanction the release of the aircraft and the official line from NATO is that no requests have been made.They are, however, the only potentially game-changing assets readily available.
Reviewing and changing your asset allocation because of changes in your age and life say, retirement is a good thing.
Meanwhile, pension funds stuck with defined-benefit liabilities are thinking hard about changing their asset allocation.In March, several large pension funds around the world launched a competition.
An example of the effect: Investors who are restricted from changing the asset allocation in their retirement plans more than a few times a year tend to be more heavily invested in equities than those who can alter it daily.
The first step is rethinking their investment principles to explicitly take ESG issues into account, he says, followed by changing their asset allocation, integrating ESG into their investment mandates and carrying out ESG monitoring in parallel to their financial monitoring.
Investors use ETFs as a quick and easy way to get exposure to a sector or an emerging market, thus changing their asset allocation.
While it's never smart (and rarely successful) to try to time the market, you can take advantage of market opportunities or attempt to avoid risk by tactically changing your asset mix within a certain range.
