Major Near-term Nightmares for Financial Markets

2021年12月14日

Tomorrow the Fed may crash the US stock market. Or he can continue to pull the cat by the tail. Moreover, here and now you can hide behind Omicron, who confidently walks the planet, having registered in 60 countries. We have already written that this strain is extremely contagious. The number of cases in Denmark, like in Britain, doubles every two days.

And although the change in the vector of monetary policy and the omicron are the two most important threats to financial markets here and now, the list of potential nightmares is not limited to this.

Recently, Bloomberg published their vision of the main threats of 2022 for financial markets.

Naturally, the first places are occupied by the pandemic and inflation, as well as the possible tightening of monetary policies by the leading central banks. But do not forget about the fact, for example, that fiscal incentives have created trillions of holes in the budgets of countries, which can only be patched by raising taxes.

We also remember about Chinese developers who, after the default of Evergrande, look extremely vulnerable. But the development sector is a quarter of China's economy, which is already starting to slow down development. Given China's zero tolerance for the pandemic, the omicron could potentially play a very cruel joke with the Celestial Empire and its economy.

Do not write off Brexit, which, although it left the front pages of economic publications, continues to be a generator of problems for both Britain and the EU.

And we have not yet written about the potential political instability in a number of countries. China versus Taiwan, Russia versus Ukraine, elections in Turkey in 2023, elections in France and Brazil. Much can change in the geopolitical situation. And most importantly, there is no reason to expect positive things.

In general, there are enough clouds on the horizon, and even now the sky is far from cloudless.