‘Violent’ stock market crash could be round the corner as hidden liquidity crunch ‘blows up’ in investors’ faces, warns think-tank

• Bank of International Settlements warns of ‘violent’ market crash
• Low levels of market volatility persist despite conflicts and crises across the world
• Investors buying assets on the misguided presumption of a level of liquidity
• Share prices continue to plummet as investor confidence decreases

A potentially ‘violent’ stock market crash could be on the horizon as financial markets become dangerously stretched, a think-tank has warned.

The Bank of International Settlements said that suspiciously low levels of volatility in the markets seen this year suggest a lack of liquidity that could trip up investors who assume they can dispense of assets when a sell-off begins.