Sell signals: Five fund buyers reveal their key recession indicators

Return of volatility

Five fund buyers have revealed the key market crash signals to monitor amid concerns of a global reduction in liquidity as central banks begin reducing their balance sheets, alongside populism returning to the fore in Europe and US President Donald Trump implementing tariffs on his allies.

Last year was described as the ‘Goldilocks' year by investors, but in 2018 markets have seen a return to volatility. For example, the FTSE 100 hit a 2018-low of 6,889 points on 26 March before soaring to a fresh record high of 7,877 points late last month. Meanwhile, geopolitical risks are rising across the globe as Trump locks horns with China and Europe over trade, and two parties have formed a coalition government in Italy that threatens the European Union. Emerging market equities have also wobbled in recent months on the back of the US dollar rally and concerns the Federal Reserv...