But those swings in the market over the past year often caused
by macroeconomic shocks such as the crash of the Shanghai Composite in 2015 and the Brexit referendum, also relegated some investors to the sidelines.
In the presence of such vulnerabilities, an event such as an
adverse macroeconomic shock can stress the financial system or even trigger a crisis.
«
Macroeconomic shocks like rising interest rates, a labour market slump or falling house prices could pose a serious threat to the solvency of highly - indebted households.
If any of those countries experiences a market or
macroeconomic shock, a large number of stocks would likely suffer, and an investors» overall portfolio would likely follow.