The Globe and Mail reports in its Wednesday edition that global markets are becoming overly comfortable with risks such as trade wars, geopolitical tensions and significant government deficits, which, along with overpriced assets, raise the likelihood of a "disorderly" market correction, according to the International Monetary Fund. A Reuters dispatch to The Globe reports that President Donald Trump's renewed tariff threats on China intensified investor fears, leading to a sell-off in U.S. stocks and a decline in bitcoin. Despite recent volatility, markets have remained resilient since April, when Mr. Trump started his trade war, fuelled by expectations of monetary easing in major economies. However, this optimism hides potential risks from tariffs and high government debt, with the IMF warning that connections between banks and less-regulated firms could exacerbate these issues. Despite negative economic data, equity and corporate credit valuations are "fairly stretched" due to enthusiasm for AI mega-cap stocks, which risks a "sudden, sharp correction" if returns do not meet high expectations, according to the IMF. The IMF also called for "urgent fiscal adjustments" to curb deficits and ensure resilient bond markets.