“Possibility of a severe fall in the stock market is now very high,” Murray Gunn, HSBC
10/13/16 – (RT) In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he was on red alert for an imminent sell-off in stocks in the light of the price action over the past few weeks.
“With the US stock market selling off aggressively on October 11, we now issue a RED ALERT. The possibility of a severe fall in the stock market is now very high,” Gunn wrote.
Other financial firms have also issued red alert warnings. Citigroup told clients that investors aren’t adequately hedging US election risk. The managing director at Citi Thomas Fitzpatrick has also pointed at the market’s similarities to the 1987 crash.
The volatility has continued to rise since the end of the summer and the recent sell-off was seen across many areas of the market, and not just selected groups, according to the HSBC analyst.