Markets run on more than earnings and interest rates — they run on trust. Trust in rules. Trust in institutions. And trust that those rules will be applied consistently over time.

When policy becomes unpredictable, politicized, or selectively enforced, it introduces a kind of risk that models can't quantify — but investors still feel. Whether it’s regulation, monetary decisions, trade policy, or institutional credibility, shifts in how our system governs can move markets just as much as fundamentals.

This section examines how policy decisions shape investor confidence, influence capital flows, and sometimes create tail risks hiding in plain sight. Understanding policy risk isn’t about politics — it’s about seeing the full picture.