What is an external shock?

23 February 2020 | General News

Dr Zhang Weina, Senior Lecturer and Assoc Prof Ruth Tan, Deputy Head, both from the Dept of Finance at NUS Business School explained that an external shock is an unpredictable event that originates outside an economy but is expected to impact it in a significant and visible way. They added that when an external shock hits, it may be timely for fund managers and investors to relook their tactical asset allocation and shift into more promising industries.