Low-Volatility Stocks At Risk As Credit Cycle Ends, UBS Warns A Crash Is Coming

Tuesday, August 30, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
Aug 30, 2016

UBS’ Paul Winter believes we are witnessing the end of the credit cycle – earnings growth rates are flat, and the stock market impact has been increasing. Importantly, from a risk perspective, Winter warns that Systemic Risk is rising, and Economic Policy Uncertainty has hit all-time highs, warning that the key risk today lies in low-volatility stocks and the broad market’s equity risk premia – “either earnings need to pick up dramatically, or alternately, equities would need to correct by around 20% to bring the equation back into equilibrium.”

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