"It's likely there'll be a 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months."
"We should also welcome the possibility that there would be drawdowns, 10 to 15% drawdowns that are not driven by some sort of macro cliff effect."
"With more questions than answers, we maintain maximum diversification. Consider taking profits in high-beta, small/micro-cap, speculative and unprofitable equities and redeploying to large-cap core and quality stocks, including the 'Mag 7' and GenAI beneficiaries in financials, health care and energy,"
Major bank leaders warned of sizable equity drawdowns and private-credit systemic risk, and two Fed members remained undecided on a December rate cut. Asian and European indices fell sharply, with STOXX Europe 600 down 1.41%, FTSE 100 down 1.11%, Nikkei 225 down 1.74%, and South Korea's KOSPI down 2.37%. S&P 500 futures dropped more than 1% before New York open. Tech futures led losses, with Nasdaq 100 futures down 1.35% and individual names like Palantir, Tesla and Meta trading lower premarket. A major bank CIO advised selling speculative, high-beta stocks and rebalancing toward large-cap core and quality names.
Read at Fortune
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