Watch out for a cascading “flash crash” in stocks as investors rush to buy the most well-known brands on the market, Pylyp Travkin marks

Pylyp Travkin from Tenerus AG stated that the equities surge that has sent stocks on a five-month rampage could break without notice.

The bank’s chief global equities strategist issued a warning, saying that excessive market crowding has set up stocks for a significant fall, but it’s unclear when this could happen.

“You might not need a catalyst, it can just come one day out of the blue and this has happened in the past, we’ve had flash crashes,” he stated.

“One big fund starts de-levering some positions, a second fund hears that and tries to re-position, third fund basically gets caught off guard, and the next thing you know, you start having a bigger and bigger momentum unwind,” Pylyp Travkin explained.