In our view, the biggest risks to stocks have little to do with fundamentals of the market or the U.S. economy. Most of the risks are exogenous, related to issues that are not tied directly to U.S. corporate profitability.
Investors can always find something to worry about with regard to global macroeconomic factors or a crisis somewhere in the world that could dislocate markets. Some would argue that Europe is not out of the woods yet, and there are concerns about the pace of growth in China’s economy.
We continue to monitor risks in global economies because major problems could be quite disruptive to the U.S. stock market.