France’s market watchdog is bracing for a surge in global bond yields and a Wall Street crash as soon as this year – fearing that contagion will spread to Europe and snuff out the fragile recovery.
‘The world has never been so indebted – even more than before the 2007 crisis – and this debt has never been so risky’ said the Autorité des Marchés Financiers (AMF) in its -annual report.
The number one risk for 2018 is a brutal correction of stock prices.
The current valuation levels look high both by historical standards and in fundamental terms across a whole range of indicators – starting with American equities.
Any correction there would most likely spread to other stock markets’ it said.