Despite current resilience, the Sevens Report raised alarms over growing risks in the stock market. Factors such as rising unemployment, weak manufacturing, and global political tensions, like U.S.-China relations, threaten long-term market stability.
While stocks may rise due to optimism around Federal Reserve rate cuts and AI-driven growth, underlying economic and geopolitical risks remain. Sevens suggests that “tectonic” issues, including potential political shifts and slower global growth, could trigger a 10%-20% market drop if these challenges materialize.
The stock market’s short-term gains face long-term risks, warning investors of potential shocks.
