Where will the epicenters of the next crisis be?

This tightening of liquidity reflects the explosive inflation in the world and the global tightening of Central Banks: in the United States with the Federal Reserve, but also in the world from now on except in Japan, which leads to a strong devaluation of the yen. Any Central Bank that stands out from the others sees its currency devalued strongly.??

Stress Index heatmap (source: Ai For Alpha)

2022 is the year of contrasts within geographical shares, sectors, and currencies.?

On currencies: Gap of more than 50% between the ruble (the best performing currency since the beginning of the year!) and the Turkish lira, which has fallen by 23%.?

On geographical indices: Gap of more than 30% between the FTSE down by only -3% and the S&P 500 down by 23%.?

On the European sectors: A 50% gap between the oil sector, up 16%, and the consumer goods sector, down 36%, or the real estate sector, which is heavily dependent on interest rates, down 28%, or technology, which is down 33% in Europe.?

Consequently, the question is not whether there will be a wave of defaults or whether the vulnerability to the unprecedented rate hike, which saw US mortgage rates rise from 3% to 6% in 6 months, will be revealed, the question is: When will these vulnerabilities appear and what will be the depth of contagion to the rest of the financial system??

Turkey's sovereign default, real estate turmoil, mass retail and consumer staples sectors vulnerabilities or the collapse of crypto assets: place your bets for the epicenter of the next crisis.?