A big drop in global stock markets will only need a " small trigger " , citing Citi Bank . markets worldwide are becoming complacent , with embedded bias meaning global markets are more at risk from " unexpected reactions to expected outcomes " taking market participants by surprise than from hard - to - predict black market events . It cites Brexit as an example where the markets were almost certain that the UK would vote to approve , making the market shock all the greater when the result came in .
A big drop in global stock markets would only need a "small trigger", warns Citi Bank. Investors worldwide are becoming complacent, with embedded bias meaning global markets are more at risk from "unexpected outcomes to expected events" taking market participants by surprise than from hard-to-predict black swan events. It cites Brexit as an example where the markets were almost certain that the UK would vote to remain, making the market shock all the greater when the result came in.