"There's a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point."
"The thing that really keeps me awake at night is the likelihood of a number of risks crystallising at the same time."
The Bank of England's deputy governor has indicated that global stock markets are near record valuations, which are deemed unsustainable. Both UK and US markets are at all-time highs, driven by investor optimism about future earnings. However, concerns exist regarding financial stability if a market drop coincides with ongoing geopolitical issues, such as the Iran and Ukraine wars, which are contributing to global inflation. The rise of private credit also poses risks if borrowing companies fail to repay, potentially leading to broader financial problems.
Read at www.independent.co.uk
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