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The pandemic’s resurgence at the end of 2021 and an uncertain economic and monetary policy
outlook are leading market participants to revisit their growth and market expectations. Going
forward, we continue to see high risks to investors of further – possibly significant – market
corrections as markets remain nervous and geopolitical tensions are rising.
Verena Ross, Chair, said:
“All investors should consider that the risk of market corrections remains acute. This
was demonstrated last year in two episodes of sell-offs largely driven by news first
related to Evergrande and then to the resurgence of Covid-19. The markets remain
highly volatile and ESMA sees growing uncertainty for investors going forward.”
“Retail investors are of particular concern to ESMA. Their participation in financial
markets has increased substantially in recent years, with new investors taking
advantage of the convenience and user-friendly features of mobile trading platforms.
This diversification offers opportunities but also comes with risks, and ESMA remains
concerned about risks to retail investors who buy assets with expectations of significant
price growth, and without realising the high risks involved....
more at ESMA