Economics
Dec 22, 2025
Kenneth Rogoff
After three years of extraordinary returns, investors should start worrying about the inevitable crash that follows periods of sustained euphoria. But while the odds of a major market correction in the next few years appear uncomfortably high, heading for the exits now could be premature.
CAMBRIDGE – The biggest surprise of the past year is not that global asset prices have risen so sharply but that investors have shown so little concern about risk, apart from a brief scare following US President Donald Trump’s “Liberation Day” tariff announcement in April. The question now is whether 2026 will break the spell.
