Ray Dalio from Bridgewater and Howard Marks from Oaktree have both recently issued cautionary memos, citing risks that include geopolitics, excessive valuations, and potential reversal of ETF flows. In this short exclusive, Dr David Sokulsky, CIO at Crestone Wealth Management, highlights his view on the big risk to the market today.
“If we see inflation pick up, we do get into a tighter monetary environment and can see interest rates rise. If that happens, that changes the valuations across almost every asset class, whether it’s US equities or Australian housing, and that’s the big risk”.
David lists the three key drivers for this to occur, which include the impact that technology is having on global economies. Importantly, he also provides a sense of the potential timeline within which this could unfold.
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