Markets fell on Thursday.
The S&P 500, the STOXX Europe 600 and the Nikkei 225 all fell 0.4 percent.
A JP Morgan team led by Marko Kolanovic, global head of macro quantitative and derivatives strategy, blamed the weakness in global markets mostly on a “risk-off” mode amid concerns about contagion from emerging markets.
Peter Kenny, market strategist at Kenny & Co, said that the decline “is very much a tech-centric reversion” and “is long overdue”. He added that the correction “will take a long time to work through”.
Indeed, strategists at Goldman Sachs have reported that its bull-bear indicator is indicating that the likelihood of a bear market occurring is at its highest point since around the mid-1970s.
Meanwhile, Gillaume Touze, CEO of Quadra Capital Partners, even suggests shorting US stocks.
“We believe that the volatility is going to very much remain,” Touze told CNBC on Thursday. “That volatility combined with political turmoil is making us overall short on the key markets, particularly the U.S. one.”
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