Financial CRASH WARNING: Signs showing world could be on brink of CRISIS
A GLOBAL financial crash could be just around the corner as red flags and early warning signs begin to present themselves, a top asset manager has predicted.
By HARVEY GAVIN
Express.co.uk
Mon, Jun 11, 2018
Despite a generally positive outlook, illustrated by a global recovery, strong earnings and low unemployment in developed nations, disaster could be looming, Francesco Filia said.
The chief executive at London-based Fasanara Capital warned the frequency of major market corrections and the historically high debt-to-GDP levels encumbering some of the world’s 10 biggest economies were major danger signs.
Mr Filia accurately predicted the sudden and dramatic market correction in February this year when trillions of pounds were wiped from the value of stocks across the globe.
In a client note, the asset manager warned: “The signposts of a potential market crash are coming in with increasing hubris.”
Mr Filia said the increase in the frequency of value-at-risk shocks – sudden market corrections – demonstrated how fragile global markets currently are, CNBC reports.
His client note identified the VIX global volatility index spike in February combined with a potentially devastating economic crisis in Turkey as early warning signs of “system instability of the broader financial network”.
He likened the current state of financial markets to a “china shop”, warning there are “several elephants” inside which could quickly cause disaster.
He concluded: “If this view is right, a critical transition and a moment of final rupture for global markets may then loom ahead.”
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