Deutsche Bank Warns of Next Financial Crisis
Investors need to be made aware. Deutsche Bank has just put out a substantial piece of research calling for a new financial crisis. In a report entitled "The Next Financial Crisis", the bank says that given all the trigger points that could spark a crisis, as well as the huge buildup in debt recently, a crisis is bound to occur. It names a number of possible catalysts which may start it, such as a recession, an unwind of QE stimulus, or a combination of several events which cause high equity and bond valuations to collapse "under the weight of their own implausibility" (from FT). What Deutsche Bank does not say is when this will happen or how long the status quo might continue.
FINSUM : We laud this piece for coming up with tangible catalysts which may spark the next crisis, but for regular investors the timing is just as important. Financial markets seem to always be headed inevitably towards crisis, it is missing the gains on the way that makes sitting on the sidelines difficult.
- Deutsche Bank