The increasing risk of a major financial accident that causes a market surrendering later in the year as it may pave way for investors to accumulate on quality risk assets, Beat Wittman chairman of Zurich-based Porta Advisors, said to CNBN.
Wittman described the global economy as it stuck in a perfect storm environment of supply chain attrition, shrinking final demand, high inflation, growing interest rates, decreasing corporate earnings and a potential financial accident.
He added that the investors may run away if the weak link in the financial system breaks, providing investable bottoms for shrewd investors.
Central banks around the world such as China and Japan, have been tightening monetary policy aggressively in recent months aiming to curb runaway inflation.
