French Market Regulator Sees “Brutal Repricing Of Assets”; Valuations, Volatility “Don’t Reflect Real Uncertainty”

High valuations and low volatility don’t reflect the level of economic growth nor the geopolitical uncertainty facing the market, the Autorit des Marchs Financiers says in a mid-year report on main risks to global markets. While stock markets have shown resiliency, the French regulator warns of the “systemic threat” fromn a “sharp market correction.”
As AMF continues… Equity market volatility therefore now appears to be decorrelated from political uncertainty indexes…

This post was published at Zero Hedge on Jul 4, 2017.