Oxford’s leading expert predicts a major stock market correction
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On Tuesday Gabriel Sterne, Oxford's global head of macro research, issued a memo note saying that there was a "significant possibility” of an upcoming global stock market correction, Business Insider reported.

According to the leading expert of Oxford Economics, this can possibly result in as much as 0.3% off growth in major economies.

"Given the extent of overvaluation currently, a shock to market confidence – an end to irrational exuberance – could lead to sharp price falls," Sterne suggested in his note.

He also mentioned several other fundamental risks, including continuous global growth, a reversal in lowflation, and a slowdown in China. Sterne also reminded of a so called 'Trump factor' a day before huge market reaction the escalation around North Korea after Trump’s fiery warning to Kim Jong Un.

"A 10% decline in equities triggered by a loss of market confidence would reduce the level of both consumption and GDP on average by a little over 0.3% across advanced economies, according to our model simulations, with the peak impact occurring after four to six quarters," Sterne added.

Investors around the globe have been enjoying a very fruitful year. Stocks around the world have rallied strongly during 2017, and all three major benchmarks in the USA set many new record highs this year. And now, according to Oxford Economics expert, it’s time to prepare for a correction.

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