Markets rise but risks are “stacking up”

Markets rose on Wednesday.

The S&P 500 rose 0.5 percent, the STOXX Europe 600 rose 0.7 percent and the Nikkei 225 rose 0.7 percent.

Stocks in the US were boosted by a report showing that the economy grew at a 3 percent rate in the second quarter, faster than the initially-estimated 2.6 percent rate.

However, a Bloomberg report said that risks are “stacking up” for markets.

Citigroup Inc. strategists including Jeremy Hale reportedly cited “worrying developments” that may signal the approach of a correction in stocks while Commerzbank AG has seen growing evidence of bearish sentiment in bond funds.

Still, Warren Buffett thinks that while “stocks aren’t as cheap as they’ve been most of the time”, they are “still very attractive compared to bonds”.