Goldman Says There’s an Elevated Risk of a Big Market Selloff

Video available at the source.

 

And it’ll be tough to find a place to hide.

“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. Continue reading

Spectre of 1929 crash looms over FTSE 100 as traders take on record debts

Margin debt at record high

 

The spectre of the 1929 stock market crash looms large for UK investors as traders borrow record amounts to invest in rising stock markets

Nothing has been learnt from the madness of the 1929 stock market crash as once again traders reach for record amounts of debt to pile into rising share prices.

The level of margin debt that traders are using to buy shares in the stock market reached the highest levels on record, according the latest data from the New York stock exchange. Continue reading