Highest risks in a Generation?
In Harver Capital's latest Quarterly report we explore the risks currently facing financial markets.
Equities have defied gravity in the 3rd Quarter, however recent turbulence is a reminder that rising interest rates, slowing economic growth and a generally tightening liquidity environment are not a supportive combination.
Our below "Diffusion of Risk" indicator, which is comprised of indebtedness, valuations, inflation, interest rate momentum and other factors confirms is at an all time high. This risk measure worked well highlighting zones of risk in 1987, 1990, 1998, 2000 and 2007:
Our full Quarterly report can be accessed here: Harver Capital Quarterly Market Outlook October 2018