December 4, 2023, 10:19 am EST
Potential Threats at the Top
There are potential threats at the top. In the stock markets, an extreme condition may lead to another extreme condition to surprise most people in both ways.
When all major indexes are at the historical highs, there are many signs of troubles ahead where a sell-off may occur at any given moment. These events, whenever ready to burst, could be devastating to the US or global economy that turn a bull market to bear market at the blink of eyes.
Disease
Most of us still remember about 3-4 years ago when COVID-19 started. The nightmare of death tolls, shutting down of business, and shortage of medical supplies are not very far away from our memory. Unfortunately, another wave of respiratory illness surged again as reported by Reuters on 12/01. There is a possibility that another wave of global trouble is on the way.
Wars
In addition to Russia-Ukraine and Hamas-Israel wars that are actively engaging now, there are more military activities in the South China Sea, Taiwan strait, and North Korea as well as in the middle East region. In our opinion, the sparks began to increase rather than decrease. Needless, the main event of WWIII is simply getting closer than a few years ago since there is no resolution at sights.
Collapse of China Economy
China’s economy is in the process of collapse that began with Evergrande about 2-3 years ago, Now, the housing crisis spreads from builders to banks and local governments. The magnitude of its breakdown could be similar to the US Great Depression between 1929-1939. Needless to say, the troubles would drag down the global economy for sure.
Although some market participants are optimistic about improvement of inflation, the end of the tightening cycle that reflected on the stock markets, we kept cautious eyes on other bigger events above. Particularly, these events are not rumors or speculations, they are happening now. The question is when they will surge to the headlines to catch everybody’s attention.
