11/10/17

Kass Warns: "The Probability Of A Flash Crash Grows Exponentially"



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Kass Warns: "The Probability Of A Flash Crash Grows Exponentially"
// Zero Hedge

Submitted via Doug Kass,

"We seem to be living in the riskiest moment of our lives, and yet the stock market seems to be napping. I admit to not understanding it.'

--Dr. Richard Thaler, Nobel Prize winner

In an interview with Bloomberg Tuesday, University of Chicago economics professor Richard Thaler went on to say in response to the market's low volatility and continued investor optimism, "It's certainly puzzling... and it's puzzles that attract my attention." He added that he is nervous, and when investors get nervous "they are prone to being spooked."

A World Without Risk?

These observations and, specifically, the quote I started with this morning are much like what I have been saying in my Diary -- namely, that never in history have there been so many potentially adverse political, geopolitical, economic and market outcomes.

I am not alone in this view, as Macquarie's Viktor Shvetz recently wrote:

"Investors are probably suffering extreme mental exhaustion. Historically low volatilities and risks, coinciding with high valuations, would make anyone nervous."

According to the ....

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