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 Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns

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RR Phantom

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Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns Vide
PostSubject: Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns   Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns Icon_minitimeTue Aug 06, 2019 5:57 pm

A market strategist is warning of the possibility of a 'second-wave' market shock that would be comparative to the sell-off triggered by the collapse of Lehman Brothers in September 2008.

Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns 16963816-7328675-image-a-13_1565120302328

Nomura quantitative strategist Masanari Takada issued the warning with blunt language raising the possibility of a second-wave 'earthquake' that could exceed the original stock sell-off which rattled the markets Monday, with the Dow falling 767 points overall and at one point coming close to losing 1,000 points.

'At this point, we think it would be a mistake to dismiss the possibility of a Lehman-like shock as a mere tail risk,' Takada cautioned.

He based his analysis on data indicating hedge funds may be fleeing the market.

Monday's market volatility featured a drop in the Dow Jones Industrial Average that exceeded 900 points at its low, after China made currency moves in response to President Trump's barrage of tweets and statement about imposing new tariffs.

'We would add here that the second wave may well hit harder than the first, like an aftershock that eclipses the initial earthquake,' said Nomura, CNBC reported.

https://www.dailymail.co.uk/news/article-7328675/Market-analyst-raises-possibility-Lehman-like-sell-off.html
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Stock market is at risk of 'Lehman Brothers' collapse because of China trade war, Nomura analyst warns

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