HSBC Warns of Upcoming Crash in U.S. Stocks
From our friends at Bloomberg:
Yesterday’s (10/12) big stocks drop may have just been the beginning. HSBC Warns of Upcoming Crash In U.S. Stocks
Also causing some concern for Gunn is the intensity of the selling pressure, measured by what’s called the Traders Index, an indicator that combines both market breadth and the trading volume of advancing stocks versus declining stocks. The higher the index, the more bearish that day’s trading.
Earlier this week, Ben Laidler, global equity strategist at HSBC Holdings Plc told Bloomberg TV in an interview that the stock market is exposed to “a dangerous combination” of risk factors that investors aren’t looking at closely enough. Reasons for his caution included high earnings expectations, economic-policy uncertainty as well as the upcoming U.S. election and the Italian referendum. “We think markets are pretty vulnerable,” he concluded.
Other firms have issued similar warnings, with Citigroup Inc. Head FX Strategist Steven Englander telling clients that investors aren’t adequately hedging U.S. election risk and technical analysts at UBS AG calling for a top in the S&P 500 following the recent bond market sell-off that pushed yields on the benchmark 10-year U.S. Treasury above 1.7 percent.
HSBC: There’s Now a Very High Chance of a ‘Severe Fall’ In U.S. Stocks: Read More from Bloomberg by clicking HERE
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HSBC Warns of Upcoming Crash In U.S. Stocks