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Why There Is A Higher Risk Of A Big Market Selloff – Bloomberg

June 08
14:23 2016

“With the S&P 500 close to all-time highs, stretched valuations and a lack of growth, drawdown risk appears elevated.”

So says Goldman Sachs Group Inc. Managing Director Christian Mueller-Glissmann, who highlights that selloffs in excess of 20 percent for major bourses occur relatively frequently and recently have been brought about by concerns of a global nature. With a possible Brexit, the U.S. presidential elections, and a Fed that appears committed to continuing to lift policy rates, this level of event risk is certainly on the table.

He adds that the calm implied by the low levels of the Chicago Board Options Exchange Volatility Index belies the fragility of markets, which have become more susceptible to abrupt declines.

Continue Reading At Bloomberg

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