This chart from SG cross asset research shows that the threats from the tail risks or beyond three sigma risks are now higher than ever.

After Brexit referendum, the whole Europe suffers uncertainties surrounding the four-decade-long project, better known as the European Union, At the same time world suffers the growing danger of a looming inflationary environment and the impact it is going to have on central bankers around the world, still doing their monetary easing and experiments. And as always, China remains a very big threat to the whole sytem. Chinese banks are the biggest in the world, and a failure there could bring down the global economy to its ankles.