This is another YouTube short we have posted today:
Stock markets are defying global instability — but for how long? With war escalating in the Middle East, energy prices rising, and political chaos in the US, is a global market crash going to happen? In this video, I explore the risks markets are ignoring — and why turmoil could be just around the corner.
There is no audio version of this video.
This is the transcript:
Are we going to get a stock market crash?
There is an obvious risk that we're going to.
Stock markets are at record highs at the present point in time, and that's illogical.
There has been a failure by those markets to recognise all the risks that have existed in the world.
And now we have another war in the Middle East, but a war on a scale that we hadn't previously imagined because the USA is now involved.
Iran is threatening to block vital supply routes for oil and gas as a result, and the consequence of that is that there will be market panic.
Market panic with regard to the price of oil and a consequent threat of inflation can only mean one thing. We could very easily get a crash in the price of shares around the world.
Everywhere, there's going to be inflation.
Everywhere, there are going to be rising interest rates.
In the USA, Trump is going to get a political backlash for what he's done.
Investors who've ignored risk for too long are suddenly going to panic and say, "We are in deep trouble."
Inflation, war, debt and political chaos are not the situation to support global record market prices.
A major correction in those prices was already overdue. It could now happen. I'm not saying when precisely, this is not financial advice. This is just a plain, straightforward political analysis of the realities that financial markets are facing, and the signs of panic are there.
Prices are already rising for oil and gas, and that means that the tipping point for shares might follow soon after.
This may be the week when stock markets wake up to the risks that they face. And if they do, turmoil could follow.
We are living in dangerous times.
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I agree panic could occur suddenly. It will be caused by a stray news event that nobody has thought about.
The markets now remind me of 1987, when everything was good news or ignored until the crash. The gross extent of leverage means that when a crash comes, it may make 1987 look trivial.
But I wonder … are the Federal Reserve quietly propping up the credit supply, and hence equity markets, with no announcement and in small amounts so as not to draw attention?
Good question
No answer…
Highly likely
My mother, who was born in 1910 and who died many years ago, frequently told me that she did not need to worry about me as I had no children – but she was mindful of all young people, as too was my father. I fully understand this and I now do worry for young people and for their future- this evening I have been speaking with a young music composer with incredible talent and I hope that he and all young people can develop their skills in a peaceful world- but is this possible or my wishful thinking?
It’s a reasonable concern
The world is not good for young people right now