Financial expert warns: Investors must prepare for losses worth trillions

Financial expert warns: Investors must prepare for losses worth trillions

According to a report by www.finanzen.net, the well-known market expert Nouriel Roubini warns of gloomy developments for international economies. He speaks of an “age of mega-threats” and explains that investors must prepare for massive losses. Other experts also share his concerns.

According to Roubini, the threats are economic, monetary and financial and interact dangerously with social, political, geopolitical, environmental, health and technological developments. Specifically, he cites ongoing deglobalization, higher labor costs due to aging in Europe, Japan and China, climate change and inadequate preparation for future pandemics as stress factors. The risks of AI-supported cyber wars and increasing wealth inequality should not be underestimated either.

Roubini's forecasts point to significant risks for the stock and bond markets. He warns of an era of stagflation, in which a weakening economy is accompanied by high inflation. This development could lead to trillions in losses for investors. Additionally, Roubini explains that a 5 percent inflation rate would hurt bond returns and could lead to a serious bear market for stocks.

The current level of indebtedness among private and public borrowers further reinforces this trend. Roubini warns of a debt trap that central banks could fall into.

In addition to Roubini, other financial experts such as Ray Dalio and Mark Spitznagel also expressed similar concerns. They advise investors to adjust their portfolios and diversify their investments in order to protect themselves against possible mega-threats. Regardless of the experts mentioned, there is currently no certainty about the actual impact on the market and the financial industry. An accurate assessment requires comprehensive analysis and monitoring of global economic and financial developments.