{"id":46447,"date":"2025-08-05T23:30:09","date_gmt":"2025-08-05T23:30:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/46447\/"},"modified":"2025-08-05T23:30:09","modified_gmt":"2025-08-05T23:30:09","slug":"us-markets-risk-10-drop-devere-joins-chorus-of-wall-street-warnings","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/46447\/","title":{"rendered":"US markets risk 10% drop: deVere joins chorus of Wall Street warnings"},"content":{"rendered":"

A sharp correction in US stock markets is now a \u201creal and rising\u201d threat, warns Nigel Green, CEO of global financial advisory\u00a0deVere Group<\/a>.<\/p>\n

His warning that a decline of up to 10% could hit this quarter joins a growing chorus of global financial institutions that see the current optimism in US markets as dangerously disconnected from deteriorating fundamentals.<\/p>\n

\u201cThis market appears confident, but beneath the surface, the risks are accelerating,\u201d says Nigel Green.<\/p>\n

\u201cWe believe a US correction of as much as 10% is a growing probability. The disconnect between buoyant sentiment and weakening economic signals can only stretch so far.\u201d<\/p>\n

Despite Wall Street\u2019s strong performance this year\u2014fueled by a 30% surge in the S&P 500\u2014key macro indicators are pointing in the opposite direction.<\/p>\n

He continues: \u201cInflationary pressures remain persistent, consumer demand is softening, and wage growth is beginning to erode corporate margins.<\/p>\n

\u201cMeanwhile, President Trump\u2019s revived trade war is already leaving its mark: businesses are grappling with rising input costs, while consumers are starting to feel the squeeze.\u201d<\/p>\n

Trade frictions are feeding directly into prices and margins. That\u2019s slowing consumer spending, weighing on growth, and pushing companies to reconsider hiring plans.<\/p>\n

The ripple effects are becoming clear. \u201cThis is policy-induced pressure that will take time to work through the system.\u201d<\/p>\n

US job growth, long a pillar of the post-pandemic recovery, has shown signs of cooling in recent weeks.<\/p>\n

New hiring data reveals a steady uptick in unemployment claims, while wage pressures persist\u2014raising the risk of stagflation if inflation re-accelerates while growth stalls.<\/p>\n

Earnings guidance across sectors has also turned cautious as margins tighten and companies brace for softer demand.<\/p>\n

\u201cMarkets are behaving as though the best-case scenario is guaranteed\u2014continued growth, tame inflation, political stability. But that narrative is fraying,\u201d Nigel Green says.<\/p>\n

\u201cInvestors who are heavily concentrated in US equities need to start repositioning now.\u201d<\/p>\n

The danger isn\u2019t just that a correction is coming; it\u2019s that few investors appear ready for it. Underneath the rally, core indicators are deteriorating.<\/p>\n

The latest ISM services index showed its first contraction in more than a year. Consumer confidence is down. Inflation in core goods categories is beginning to edge higher again as tariffs feed through supply chains.<\/p>\n

\u201cThis rally is being held together by hope and habit. Once sentiment turns, there won\u2019t be time to rethink positioning. That\u2019s why we\u2019re urging serious global diversification now\u2014not later,\u201d adds the deVere chief executive.<\/p>\n

deVere is helping clients reduce US overexposure and seek more balanced opportunities abroad\u2014particularly in markets where policy risk is lower and fundamentals are stronger.<\/p>\n

Singapore remains a standout. The Straits Times Index has advanced nearly 5% over the past month, supported by stable exports, healthy services demand, and ongoing confidence in the region\u2019s financial hub status. Its inflation remains well-controlled, while business confidence remains robust.<\/p>\n

Europe, too, is drawing fresh attention. Germany\u2019s DAX has gained over 3% as industrial output improves and recession fears ease. The FTSE 100 continues to attract yield-seeking capital, while European policymakers adopt a steadier stance amid global volatility.<\/p>\n

\u201cThe time for global diversification isn\u2019t after the correction. It\u2019s before it,\u201d Nigel Green says.<\/p>\n

\u201cThose who wait for confirmation will miss the opportunity to protect gains and capture global upside.\u201d<\/p>\n

\u00a0He insists this isn\u2019t just a risk-mitigation exercise\u2014it\u2019s a strategic realignment.<\/p>\n

\u201cWe\u2019re identifying opportunity where fundamentals justify it. This means parts of Asia, selective European sectors, and emerging markets with disciplined policy frameworks and long-term demographic support.\u201d<\/p>\n

The warning is clear. Inflation may rise again, growth is losing pace, the labor market is softening, and trade tensions are worsening. The illusion of US exceptionalism is vulnerable.<\/p>\n

\u201cShould a correction hit, it might be sudden. But the signs are already here for anyone who\u2019s looking,\u201d says Nigel Green.\u00a0\u201cGlobal exposure is no longer optional, it\u2019s essential.\u201d<\/p>\n


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