International Monetary Fund (IMF) warned that “a further escalation of trade tensions, as well as rising geopolitical risks and policy uncertainty in major economies, could lead to a sudden deterioration in risk sentiment.”
If that happened it could trigger “a broad-based correction in global capital markets and a sharp tightening of global financial conditions.”
2018-10-10, Chief Investment Officer, Steen Jakobsen of Saxo Bank said US markets are “going it alone” and investors are underestimating the amount of risk in the economy.
“What we’re saying (to investors) at a bare minimum, is do acknowledge the fact that the U.S. is expensive by reducing (exposure to) the U.S.”
“And if you don’t want to reduce overall equity exposure go to the MSCI World (a global equity index that represents just over 1,600 large and mid-cap companies across 23 developed markets countries) or take a little bit of risk in emerging markets.”
“For now, we’re pretty much saying to customers, be aware that the market is underestimating risk,” he added.
CNBC, Holly Ellyatt, 2018-10-10, “Listen to the IMF’s new warning, economist says, and cut your exposure to US stocks”