The nature of risk is changing, and markets are changing along with it.

They have been called “the four most costly words in the annals of investing,” and surely that’s true: This time is different. Still — hear me out! — there are reasons to entertain the possibility that, well, this time really is different. The nature of risk is changing, and markets are changing along with it.

The investing era of the past decade and a half, when just about everyone made money, has passed. That could bring more upside for investors — but also more risk. Investing will require more attention and skill, and risk management will matter again.

Three big changes underlie the shift. The first is a technological shock. Despite a bleak outlook, partly due to soaring government debt and policy (especially on tariffs and immigration) that tends to put politics ahead of economic concerns, the US economy still has some important things going for it. Chief among them is that it is still the home of much of the world’s innovation, especially in artificial intelligence.

Continue reading the entire piece here at Bloomberg Opinion (paywall)

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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.

Photo by Yuichiro Chino/Getty Images