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

zerohedge.com / by Tyler Durden / Jul 4, 2017 12:45 PM

High valuations and low volatility don’t reflect the level of economic growth nor the geopolitical uncertainty facing the market, the Autorité des Marchés 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

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