Potential surge in global bond yields and a Wall Street crash

Last week France's market watchdog became the latest to join the growing chorus of the bears. It warned we could be bracing for a potential surge in global bond yields and a Wall Street crash — perhaps before the end of the year. It then warned this contagion could spread to Europe, killing any kind of fragile recovery. The Sydney Morning Herald reports: ‘“The world has never been so indebted — even more than before the 2007 crisis - and this debt has never been so risky,” said the Autorité des Marchés Financiers (AMF) in its annual report.  ‘“The number one risk for 2018 is a brutal correction of stock prices. The current valuation levels look high both by historical standards, and in fundamental terms across a whole range of indicators, starting with American equities. Any correction there would most likely spread to other stock markets,” it said.’