Risks

[Jon Steeler]

What are the current macroeconomic risks to the markets?

[Djamel Brahimi]

I explained these in another question regarding gold. 

But there are a few although some are more prominent than others. Of course there are more specific ones to each reason but I will list the global ones. 

First is the trade war which we have seen a phase one deal signed and so should not cause too many issues in the next couple of months.

Next is the situation with Iran which was de-escalated and we hopefully won't see it escalate again.

Then there is the virus in China which is quite a big risk and making markets nervy. If it continues to escalate I suspect we will see a sharp sell off and flows into safe havens.

Finally there is one that is more of a long term risk. It is global debt. Debt levels globally are extremely high and are posing a real risk. But if the fed keeps providing liquidity then it won't be an issue. But, as we know, nothing can last forever.