Stocks Have Survived Inflation, Tariffs And War. HSBC Says This Is What Could Finally Break The Market.

Global stock markets have remained resilient through inflation, tariffs and geopolitical shocks, but HSBC strategists have identified several factors that could put that resilience under pressure. (Credit: Reuters)

Global stock markets have absorbed a succession of economic and geopolitical shocks in recent years without suffering a prolonged breakdown, but HSBC strategists have identified several conditions that would leave investors more exposed after a period of unusually resilient returns.

Markets have weathered inflation, higher interest rates, tariff disputes, wars, the unwinding of leveraged carry trades and concerns about private credit. HSBC strategists have described risk assets as "Teflon," reflecting how quickly markets have moved past developments that previously might have produced longer periods of stress.