The number one risk in markets

Asking what the biggest risks are to markets today, Livewire interviewed Giselle Roux, Chief Investment Officer at Melbourne-based wealth management firm Escala Partners which manages over $2 billion on behalf of clients. She told us that the number one risk in the market is a credit event, and that investment risks are elevated by a combination of forthcoming macro events and higher than average valuations: “almost all systemic meltdowns are related to credit events…it usually relates to some kind of excess in lending markets, or excess leverage, or misunderstanding of leverage, in those markets.” The US markets saw steep falls in all asset classes on Friday night following speculation of more aggressive rate rises. To hear Roux’s thoughts on the Fed, and three key macro risks to the market, please watch our Livewire Exclusive below.