6 X-Factor Risks Keeping Fund Managers, Investors Up at Night

Global fund managers responding to a monthly Bank of America Merrill Lynch survey identify and rank risks that could cause an abrupt and abnormal drop in global markets. Britain’s possible exit from the European Union tops the list for May. Second, an ongoing concern is the risk of devaluation and defaults in China. Another ongoing concern is quantitative failure, “that trillions of dollars' worth of money printing in the US since 2010, combined with money printing in Europe, the UK and Japan, will at some point come back to bite the markets,” writes stockbroker Marcus Padley for the Sydney Morning Herald. “At this point the price looks like it's being paid gradually through lower/no/negative interest rates, which will manifest itself through lower asset price growth (subdued equity markets) and lower returns on assets (savers/retirees punished).” The list ends with the US election outcome in November, the possibility of US stagflation as well geopolitical risks, including terrorism and conflicts, anywhere in the world. – YaleGlobal

6 X-Factor Risks Keeping Fund Managers, Investors Up at Night

Brexit, defaults in China, quantitative backlash and uncertainty over US election top list of potential risks that could trouble global markets
Marcus Padley
Friday, May 27, 2016

Read the article from the Sydney Morning Herald.

Marcus Padley is a stockbroker with MTIS Pty Ltd and the author of the daily share market newsletter Marcus Today.

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