- a default of Portugal, Italy, Greece or Spain
- a default of California
- bond vigilantes taking up US rates
- a dollar crisis
- a double dip recession
- a reemergence of the housing crisis.
- China bubble bursts
- a geopolitical event
This morning there are debt worries in Portugal and Spain taking down our futures. If any of the above events occur it will roil our markets. Oversold will not matter. I believe it is highly likely that at least one of the above events will occur if not a number of them in the coming years. That is the risk of being an investor in an unbalanced economy.