18 risk indicators flash red, Citi warns: Global stock market bubble reaches highest level since 2008
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⑴ Citi has warned that global stock markets are currently at their most "frothy" levels since the 2008 financial crisis. Its bear market checklist shows that 10 out of 18 risk indicators worldwide have already turned red, triggering caution. ⑵ Factors driving up market risk include persistently rising valuations, widespread market optimism, a surge in AI-driven capital expenditures, and a revival of initial public offering activities. Although Citi maintains a positive outlook for stock market performance by the end of the year, it clearly points out that if risk signals continue to increase, a buy-the-dip strategy could become increasingly dangerous.
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