Market alarm 2025: Is the collapse of a mega fund threatened? Experts warn!

Investors are faced with the challenge of repositioning themselves for 2025 after the strong stock market year 2024. Banque Syz experts carried out an analysis that identifies ten possible surprising market developments. The risk of a potential collapse of a mega fund is particularly alarming, which could lead to possible chain reactions and real risks on the market. Despite these warnings, the forecasts remain optimistic for the coming year, since the Banque Syz of robust economic growth and strong double-digit growth expectations on S&P 500 companies start.

Low real interest rates in industrialized countries could also have a positive effect on the market prospects. However, investors should be careful and do not expect unchecked upward trends because challenges are to be overcome. A major risk could be a large fund that may have positioned itself incorrectly and is involved in unfavorable trades. The background to these concerns are the risk of concentration of the "Magnificent 7" shares and the increase in 0DTE options, which are particularly popular with small investors.

risks and historical comparisons

An incorrect investment could trigger serious chain reactions in other trades and lead to a volatile event. Historical events such as the Flash-Crash 2015 and the collapse of the HedgeGrade LTCM in 1998 could serve as role models. In addition, “Volmageddon” events in 2018 led to a volatility shock and losses in billions of bills. The hype around Nvidia could tempt fund managers to make further investments in this area, which increases the risk of potential market surprises, as well as finanzen.net reported.

The ETF market in Europe continues to grow rapidly in parallel to these developments. In the period from January to September 2024, net inflows of a total of 161 billion euros were recorded, which for the first time exceeds the assets in ETFs the $ 2-Billion brand. Over half of these tributaries were eliminated on US stocks, which were able to attract 75.9 billion euros in new investments by November 2024, such as Dominant US-Tech companies, including Apple and Google, continue their upward trend and benefit from the continued AI boom, while at the same time increasingly active ETFs that offer towering at lower costs.