The worldwide economy has reached peak growth due to - among many factors - low household saving rates, the combined effects of monetary tightening out of both the US Federal Reserve and The People's Bank of China, along with the unwinding of quantitative easing around the world.
"[The] global economic cocktail makes many countries and asset markets unusually sensitive to downside surprises.”
Volatility in asset prices amid tightening liquidity, an enormous US debt issuance program, trade tensions, geopolitical realignment, chronic political instability and constrained credit growth in some economies have also played a role. In addition, much of the world is dependent on exports to drive activity.
This global economic cocktail makes many countries and asset markets unusually sensitive to downside surprises, either in their own economies or elsewhere.