Analysts at BNP Paribas said markets are overly focused on oil, Russia, ECB sovereign QE and Greece with some other risks “probably underappreciated.”

  1. It’s possible US earnings growth will be zero or negative due to global currency/commodity volatility
  2. Permanent losses of capital could have ripple effects with losses extending from emerging market investments or possibly some developed markets like Greece
  3. More important than ECB QE would be whether they buy lower-quality securities and or some EU governments begin structural reforms
  4. Republicans controlling House and Senate could lead to an agressive push towards austerity
  5. Emerging market assets may grow scarce as the pipeline of issuance dries up and demand from sovereign wealth funds persist