With 2020 on the horizon, it’s time to reevaluate what the biggest risks to financial markets are.
At the top of the list, according to Deutsche Bank’s chief economist, Torsten Slok, is the continued increase in income inequality, which promises to become a front and center issue in the 2020 presidential election.
Stocks may be at record highs as the year winds down, but Wall Street has already started issuing warnings about a host of threats to the markets in 2020.
“Trade war and impeachment are near-term risks that could even be resolved before this year is over, whereas increasing inequality is a longer-term development that may be addressed politically at some point in the future,” Slok told CNBC.
Some on Wall Street claimed Warren’s ascent in the presidential pool is set to become the market’s new “wall of worry.” Billionaire Paul Tudor Jones and longtime investor Leon Cooperman recently warned a market correction is on the way, should Warren take the White House.
While trade tensions between the U.S. and China have eased recently as the two sides work to finalize a limited agreement, the market still faces trade war tensions. President Donald Trump cast doubt on the recent progress, saying Friday that he has not agreed to roll back tariffs on China, dampening hopes about a coming resolution.
See the full list at CNBC.com.