In One Chart: The most important danger dealing with the inventory market within the coming yr isn’t commerce jitters or the election, Deutsche Financial institution warns


There’s plenty for investors to get all stressed out about in the coming year, and Deutsche Bank chief economist Torsten Slok’s latest list of the 20 biggest risks will do little to alleviate those concerns.

As you can see, the potential for more trade fallout and fears over slowing growth still rank high on Slok’s list, but inequality is in the top spot:



“They are all important at different horizons,” Slok told MarketWatch on Sunday, “but a continued rise in inequality and associated political response is something investors can no longer ignore.”

Democratic presidential candidates certainly aren’t ignoring it. Increased taxes on the rich, in an attempt to narrow the divide, is a critical part of the campaigns of both Sens. Elizabeth Warren and Bernie Sanders ahead of the election.

Big-name investors have already made it clear what a President Warren could mean for markets. Billionares Paul Tudor Jones, Leon Cooperman and Steve Cohen have all talked about a nasty correction that could follow her victory.

Meanwhile, stocks keep banging out record highs. The Dow Jones Industrial Average












DJIA, +0.02%










 , Nasdaq Composite












COMP, +0.48%










  and S&P 500












SPX, +0.26%










all closed last week in the green.



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