Market Strategist Warns of Risks Ignored by Stock Markets and Potential Correction.

Stock markets are ignoring a "laundry list" of potential risks, including rising interest rates and inflation, according to Julian Howard, investment director for multi-asset solutions at GAM Investments. The Nasdaq is "very expensive" at the moment, and now is the time for investors to "wait it out rather than engaging heavily in this market," he said. Further increases in borrowing costs would also raise the discount rates, which would not bode well for the tech stocks that constitute much of the recent driving force behind U.S. equity markets. Morgan Stanley also predicted that slower U.S. growth will lead to sharp downgrades to earnings forecasts, which will slam the brakes on the stock rally stateside.